Question

Describe the graphical relationship between ticket prices and the number of people choosing to visit amusement parks. Is that relationship consistent with the fact that, historically, park attendance and ticket prices have both risen? Explain.

Answer 1

Answer:

Please refer the detail answer below

Explanation:

(a) Relationship between ticket prices and the number of people choosing to visit amusement parks.

There is an inverse relationship (Law of Demand) between ticket prices and the number (Quantity) of people visiting amusement parks which means that as the ticket prices increase, people will reduce the quantity demanded of amusement park tickets, and spend their income on other goods. For example, they may decide to go to the movies instead of visiting the now more expensive amusement park.

b) Is that relationship consistent with the fact that, historically, park attendance and ticket prices have both risen?

The fact that, historically, park attendance and ticket prices have both risen over time does not invalidate the Law of Demand. The increase in park attendance maybe due to a change in demand (other factors), not a change in quantity demanded, shifting to the right.