Seasonal Fluctuations in Demand Are a Problem in Most Areas

question 2

Multiple Choice

Seasonal fluctuations in demand are a problem in most areas. A recommended method of leveling out demand is to:

• A) intensify and develop the area's best use.
• B) slightly diminish quality of the area to reduce demand at peaks.
• C) close down some hotels during the off-season.
• D) increase multiple-use possibilities.
• E) charge what the market will bear.

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Definitions:

System I Thinking

A term from dual-process theory referring to fast, automatic, emotional, and subconscious thought processes.

Utility Theory

A theory in economics and finance that describes how individuals choose among different options or actions based on their expected happiness or satisfaction.

Framing

The way a decision is phrased or the way options are described. Seemingly peripheral aspects of the framing can influence decisions by changing the point of reference.

Double-Or-Nothing

A gamble or bet in which the stakes are either doubled or lost entirely.