Suppose Average Attendance to Six Flags Is 500,000 When Prices

question 56

Multiple Choice

Suppose average attendance to Six Flags is 500,000 when prices are $40 a ticket and 450,000 when prices are $50 a ticket. Other things being equal, the data imply that the elasticity of demand for Six Flags is:

• A) elastic, so the increase in price caused total revenue to rise.
• B) elastic, so the increase in price caused total revenue to fall.
• C) inelastic, so the increase in price caused total revenue to rise.
• D) inelastic, so the increase in price caused total revenue to fall.

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Definitions:

Categorical Statistics

A branch of statistics that deals with variables that can be categorized into distinct groups and analyzes the frequency and distribution of these categories.

Class Relations

The ways in which classes (or sets) relate to each other, including inclusion, exclusion, and intersection relationships.

Relative Frequency

A measure of the proportion of times an outcome occurs compared to the total number of trials or observations.

Babies

Very young offspring of humans, characterized by limited cognitive and physical abilities, requiring extensive care and nurturing.