Suppose That a Study of Changes in Admission Prices Reveals

question 43

Multiple Choice

Suppose that a study of changes in admission prices reveals that when the price of admission to the museum increases by 10%, adults reduce their ticket purchases by 10%, senior citizens reduce their ticket purchases by 20%, college students reduce their ticket purchases by 25%, and children reduce their ticket purchases by 30%. If the cost of having a person visit the museum is the same regardless of whether the person is an adult, senior citizen, college student, or child, which of the following pricing schemes is the most likely to be used by the museum and why?

• A) The museum will set one price of $12 for everyone because that is the most fair.
• B) $8 for children, $10 for college students, $12 for senior citizens, and $15 for adults because the museum can earn higher profits by charging the highest price to those with the least elastic demand and the lowest price to those with the most elastic demand.
• C) $8 for children, $10 for college students, $12 for senior citizens, and $15 for adults because the museum can earn higher profits by charging the lowest price to those with the least elastic demand and the highest price to those with the most elastic demand.
• D) $15 for children, $12 for college students, $10 for senior citizens, and $8 for adults because the adults are most likely to visit and the children are least likely to visit.

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Definitions:

Preterm

Preterm refers to babies born before 37 weeks of gestation, who often face increased risks of health issues and developmental delays compared to full-term infants.

Conception

The process of fertilization where a sperm cell unites with an egg cell, marking the beginning of pregnancy.

Grams

A unit of mass in the metric system equal to one-thousandth of a kilogram.

Age Of Viability

The age of viability is the stage of fetal development at which the fetus has a reasonable chance of survival outside the mother's womb, typically around 24 weeks of gestation.