Suppose That 2,000 People Are Interested in Attending ElvisLand

question 14

Multiple Choice

Suppose that 2,000 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 5 - p, 0) , where p is the price per ride. There is a constant marginal cost of $2 for providing a ride at ElvisLand. If ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

• A) $2 per ride and $5 for admission
• B) $2 per ride and $4.50 for admission
• C) $0 per ride and $3 for admission
• D) $0 per ride and $6.50 for admission
• E) $5 per ride and $5 for admission

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Definitions:

Cerebrum

The biggest section of the brain, tasked with managing voluntary muscle movements, sight, language, flavor, auditory perception, cognition, and memory retention.

Subarachnoid Space

The space between the arachnoid membrane and pia mater around the brain and spinal cord, filled with cerebrospinal fluid.

Dural Venous Sinus

A channel through which venous blood drains from the brain and meninges back towards the heart.

Dural Venous Sinus

Vein-like spaces between the dura mater layers of the brain, draining blood from the brain.