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4. The Huechuraba Park concession company is considering lowering the price of admission. Currently, it charges $6 and the Park is visited daily by 2,400
4. The Huechuraba Park concession company is considering lowering the price of admission. Currently, it charges $6 and the Park is visited daily by 2,400 people. A consultant hired to do the work has estimated that there are still some 600 people who would be willing to visit it, but are reluctant to pay the price of admission; also estimated that the function Q = 6000-600P, describes the daily demand of the park. It is requested: a. What is the elasticity of demand? b. Based on your previous answer, if the Park concessionaire seeks to increase its income, would you advise it to reduce the price of the ticket? Q: quantity. P: price of the good
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