The Demand Function for Tickets to Ireland Is Expressed as Qd

question 130

Multiple Choice

The demand function for tickets to Ireland is expressed as Qd = 1600 - 0.005P + 2P_England + 3rain + 2Y,where P is the price for tickets to Ireland,P_England is the price of tickets to England,rain is the inches of rain Ireland receives annually,and Y is annual household income.Assuming P_England is $1000,rain is 30 inches per year,and income is 40,000,how much would the price of tickets to Ireland have to fall for consumers to be willing to buy one more trip per year?

• A) $15
• B) $20
• C) $50
• D) $200

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Definitions:

Pollution Laws

Legislation that sets limits on the emission of pollutants into the environment, aiming to protect air and water quality.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence the market price.

Positive Profits

Financial gains that exceed the costs and expenditures incurred in generating revenue.

Demand Fluctuates

The variability in consumer desire to purchase goods or services over time, often affected by seasons, trends, or economic conditions.