(a)[8]
Refer to lines 35–37. Calculate the following:
- price elasticity of demand for local visitors to MAA when the entry price is raised from $10 to $12 [4]
- monthly change in total contribution from local visitors if the entry price is increased from $10 to $12. [4]
(b)[12]
You may use your results from 2(a) and additional information. Recommend whether MAA should alter its entry price. Justify your recommendation.