Suppose That 3,500 People Are Interested in Attending ElvisLand

question 7

Multiple Choice

Suppose that 3,500 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 7 - p, 0} , where p is the price per ride. There is a constant marginal cost of $3 for providing a ride at ElvisLand. 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) $3 per ride and $7 for admission
• B) $0 per ride and $4 for admission
• C) $0 per ride and $11 for admission
• D) $3 per ride and $8 for admission
• E) $7 per ride and $7 for admission

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Definitions:

Nineteen Years Old

The age at which an individual is nineteen years into their life, considered a late stage of adolescence or the onset of young adulthood in many cultures.

Culture of Poverty

A concept in social theory that attributes the cycle of poverty to the values and behaviors of people who live in poverty, suggesting that these cultural factors perpetuate their condition.

Structural Causes

Refers to underlying societal structures, such as economic, political, or legal systems, that lead to certain outcomes or behaviors.

False Consciousness

A denial of the truth on the part of the oppressed when they fail to recognize that the interests of the ruling class are embedded in the dominant ideology.