Question
NOTE: THIS IS FOR A NON-GRADED QUIZ. Disney World is trying to decide how to set the pricing for its rides.Suppose that it can operate
NOTE: THIS IS FOR A NON-GRADED QUIZ.
Disney World is trying to decide how to set the pricing for its rides.Suppose that it can operate rides costlessly, regardless of how many people take the rides.Everyone who visits the park has a daily demand for rides given by the following equation:
a.Suppose rides are free.How many rides will each person take in a given day?
b.How much will consumer surplus fall if the price per ride is increased from $0 to $1?
c.An alternative pricing regime is to sell a daily pass and let people ride all the rides for free.What is the most Disney could charge for the daily pass?
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