If I was the manager of a theme park and the economy is declining and attendance is decreasing, should I lower the prices of tickets or keep them the same?

Answer 1

What would YOU do?? We'll be glad to add our comments to your answer.

Answer 2

Thanks :)
I would lower the price, but I'm working in a group with someone who disagrees and says that the prices should stay the same. I would think that if there is a decrease in attendance, something should be done about it.

Answer 3

As an economist, I would estimate (or predict) what the elasticity of demand for theme park entertainment is. I presume the marginal cost of letting more people into the park has got to be very small. If demand is elastic, then lower away, you will make it up on increased volume.

Answer 4

thanks :)