Space Land Amusement Park currently charges the same Pay-One-Price admission pri
ID: 383164 • Letter: S
Question
Space Land Amusement Park currently charges the same Pay-One-Price admission price all season long. After doing research on its customers and collecting attendance data for several years. Space Land calculates that if it changes weekend prices by 10%, weekend attendance will change by 5% in response. At the same time, if Space Land changes weekday prices by 10%, weekday attendance will change by 10% in response. If Space Land wants to increase its revenues, what should Space Land do?
Leave all prices as is.
Increase weekend prices and don't change weekday prices.
Lower all prices.
Lower weekend prices and raise weekday prices.
Leave all prices as is.
Increase weekend prices and don't change weekday prices.
Lower all prices.
Lower weekend prices and raise weekday prices.
Explanation / Answer
since more people come on weekends , so to increase the revenue , increase the weekend prices but dont change weekday prices. People are less price elastic on weekends
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