Suppose That 2,000 People Are Interested in Attending ElvisLand

question 18

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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Individuals who leave their native country to settle in a new land, forming colonies, often for economic, religious, or political reasons.

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