Suppose That 3,500 People Are Interested in Attending ElvisLand

question 4

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:

Creativity

The ability to produce original and unusual ideas, or to make something new and imaginative.

Organization

A structured group of people who come together to meet a common goal, such as a business or charity.

Stages of Creativity

A conceptual framework outlining the process of creative thinking, typically including preparation, incubation, illumination, and verification phases.

Lateral Thinking

A problem-solving approach that encourages looking at problems from new and diverse perspectives, rather than following conventional step-by-step logic.