The Following Question Are Based on the Following Information Regarding

question 33

Multiple Choice

The following question are based on the following information regarding the gross monthly receipts of a miniature golf course in a resort community at the shore.

-When the price per game is decreased from $4.50 to $4.00

• A) the number of games played remains the same.
• B) demand becomes price elastic.
• C) the number of games played must have fallen, but there is not enough information to tell by how much.
• D) the percentage increase in the number of games is equal to the percentage decrease in price.
• E) the profits of the golf course rise significantly.

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Definitions:

Arrival Rate

The frequency at which entities like people, goods, or events reach a point of processing or observation.

Service Rate

The Service Rate is a measure of the capability of a service system to handle customer demands or transactions within a given time frame, often used in queuing theory.

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events happen with a known constant rate and independently of the time since the last event.