Suppose That 3,500 People Are Interested in Attending ElvisLand

question 17

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

Understand the concept of budget deficits and their sustainability in relation to GDP growth.

Analyze the effects of tax rate changes on private savings and national savings.

Recognize the implications of different tax law changes on savings.

Comprehend the relationship between government deficits, interest rates, and investment.

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Definitions:

Ethics Issues

Problems or situations that require individuals or organizations to choose between actions that are evaluated as right or wrong.

FSGO

The Federal Sentencing Guidelines for Organizations, a framework that incentivizes organizations in the United States to install and maintain ethics and compliance programs to mitigate punishment for offenses.

Ethical Compliance

Adhering to laws, regulations, standards, and ethical practices that are applicable to an organization's operations and conduct.

Probation

A period of supervision over an offender, ordered by the court instead of serving time in prison.