Please answer the following questions based on your reading of the article "Tourist price sensitivity and the elasticity of demand: The case of BC

ferries," by Mark Pritchard, posted in the Content area:

2.Are the author's estimates consistent with what you expect?Why or why not?Make sure to think about all of the determinants of price elasticity of demand discussed in the lecture.What are the main conclusions you get from the author's results?

3.As emphasized in the lecture, demand elasticities are very important for firm decision making in general and pricing decisions in particular.This is addressed to some extent in the 'Strategic Responses' section of the case.Since consumer perceptions of the ferry transport seem somewhat negative, suggest two strategic responsesnot mentioned in the articlethat could improve this perception and lead to increased ferry ridership (and visits to the island).Explain briefly.