Monday, December 30, 2013

Sea World Consumer Demand is Price Inelastic

In this article it states that Sea World has raised prices by 10% resulting in a decrease in demand of 5%, which means that consumers are price inelastic.  As predicted by the demand model, if consumers are price inelastic then an increase in price results in an increase in sales revenue, which has also occurred as reported in the article.

No comments: