Economic question

In parts a and b of this question you are required to draw a graph on paper then take a photograph and insert it into your answer file. Please answer the other parts of the question (c-f) in your answer file marking each clearly.

The data table below presents sales records for a dinner cruise. The cruise experience involves a buffet dinner on a luxury riverboat with capacity to serve 200 customers per night. Management have experimented with different prices and monitored the effects of price changes on covers sold. These are the data from last year.

Price Point Adult ticket price Adult Tickets Sold (per night)

A 70 180

B 85 170

C 100 160

D 115 150

E 130 140

a.Plot these data on a graph.

The cruise was recently featured on the social media of an important influencer who posted photographs and raved about the excellent food and high quality experience. The following sales figures are observed.

Price Point Adult Ticket Price Adult Tickets Sold (per night)

A 80 200 (full capacity)

B 95 190

C 110 180

D 125 170

E 140 160

b.Add these data to your graph and annotate your graph to show what is happening in this case.

c.How would you describe the relationship between supply and demand when the ticket price is $70 following the shift in demand?

d.In terms of the factors which can cause a shift in demand, which is most likely to explain this shift? Explain your answer.

e.What are the other four factors which can cause a shift in demand? Give an example of each that would be relevant to this type of firm.

f.What are the four factors which can cause a shift in supply? Give an example of each that would be relevant to this type of firm.