Although the Owners of a Theme Park Want to Sell

question 76

Multiple Choice

Although the owners of a theme park want to sell tickets for $80, they announce a general admission price of $100 per day. However, the theme park owners make tickets available online, in grocery stores, and in banks at a $20 discount. Thus, very few people pay the full general admission price. The field of behavioral economics would call this pricing an effort to sell more due to

• A) sunk costs.
• B) overconfidence.
• C) framing bias.
• D) overvaluation of the present compared to the future.

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Definitions:

Median Income

A statistical measure that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount.

Mortality

The state of being subject to death or the incidence of death within a population.

Health Maintenance Organizations

Organizations that provide health insurance and restrict care to providers within their network, often focusing on prevention and efficient healthcare delivery.

Private Corporations

Business entities owned by private individuals or groups, not controlled by the government, and operated for profit.