Related to the Economics in Practice on Page 281: the Foreign

question 131

Multiple Choice

Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. Based on the difference in demand elasticity of foreign visitors and local visitors, the optimal strategy for the temples to maximize revenue is to

• A) charge a higher price to foreign visitors than to local residents.
• B) charge a lower price to foreign visitors than to local residents.
• C) charge the same price to foreign visitors and to local residents.
• D) not charge for admission and rely instead on donations from both local residents and foreign visitors.

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Definitions:

Sample Statistic

A numerical measure that describes an aspect of a sample drawn from a population.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Standard Deviation

An indicator of the spread or fluctuations in a data set, showing the degree to which the data points deviate from the average value.

Parameter

A numerical characteristic of a statistical population, such as a mean or standard deviation, that describes some aspect of the population.