Tickets to a Combined Amusement Park and Water Slide Were

question 126

Multiple Choice

Tickets to a combined amusement park and water slide were $49 for the day.Then the company gave customers the option to purchase tickets for either the amusement park or the water slide for $18.To help keep costs in line,the park management also began charging its customers a small parking fee.Initially,the cost of parking was figured into the $49 price.The amusement park is using:

• A) price lining.
• B) potential (or base) pricing.
• C) Unbundling.
• D) professional services pricing.
• E) price maintenance.

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Definitions:

Highly Inelastic

Describes a situation where supply or demand for a product or service is relatively unresponsive to changes in price.

Unit Elasticity

A situation where a change in the price of a good or service results in a proportional change in the quantity demanded or supplied.

Income Elasticity

A measure of how much the demand for a product changes in response to a change in consumers' income.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given market.