Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?
What will be an ideal response?
An amusement park would switch pricing strategies if it thought the new pricing strategy would increase revenues and profits. The switch could possibly reduce the costs of collecting revenue as well because tickets do not have to be collected at the entrance to each ride.
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If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is
A) 3 percent. B) 2 percent. C) 1 percent. D) -1 percent. E) 0 percent.
The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers may have
A) had adaptive expectations. B) had rational expectations but didn't trust Fed announcements. C) preferred high unemployment to high inflation. D) Both A and B are correct answers.