Interior Department Recently Announced That It Will Increase the Entrance

question 36

Multiple Choice

Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.The Interior Department must believe that

• A)park goers are very responsive to price changes.
• B)the demand for park services is elastic.
• C)the percentage increase in fees will be greater than the percentage decrease in the number of park visitors.
• D)demand is unitary elastic,and thus the number of visitors will NOT decrease.

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Definitions:

Significant Contribution

An important or valuable addition or impact that significantly affects an outcome or process.

Stepwise Regression Technique

A method of fitting a regression model by adding or removing predictors based on a specified criterion.

Backward Selection

A stepwise regression method that starts with a full model and iteratively removes the least significant variables to optimize model performance.

Independent Variable

A variable in an experiment or mathematical model that is manipulated or changed to observe its effect on the dependent variable.