Suppose That 3,500 People Are Interested in Attending ElvisLand

question 3

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{ 2 - p, 0} , where p is the price per ride. There is a constant marginal cost of $1 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) $1 per ride and $2 for admission
• B) $0 per ride and $1 for admission
• C) $1 per ride and $.50 for admission
• D) $0 per ride and $1.50 for admission
• E) $2 per ride and $2 for admission

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Definitions:

Rejection

The act of dismissing or refusing someone's presence, idea, or love, often leading to psychological distress.

Restrictive Environment

A setting or situation that severely limits freedom of movement or expression.

Wartime Rape

The act of sexual assault committed by combatants during an armed conflict or war against civilians or prisoners of war.

Military Leaders

Individuals who hold positions of authority and responsibility in the armed forces, guiding strategy, operations, and personnel.