Question

Holding all other things constant, a higher price for ski lift tickets would a) increase the number of skiers. b) increase the price of skis. c) decrease the number of skis sold. d) decrease the demand

Answer 1

The answer is C. decrease the number of skis sold

Step-by-step explanation:

This satisfies the popular law of demand which states that other things being equal, the higher the price the lower the quantity demanded and vice-versa.

Ski lift is a normal good which also satisfies the law of demand. The elasticity of demand is elastic meaning 1% increase in price will lead to a significant decrease in quantity demanded.