Reference no: EM131467293
The Yogi Bear Outdoors, Inc., is a regional provider campsites in a large state park. An analysis of the monthly demand for camping sites revealed the following demand relation:
where Q is quantity measured by the number of campsite days rented per month, P is price ($) of the sites, POG is a regional price index for other consumer goods (1967 = 1.00), I is the per capita income of state residents (in thousands of dollars), and S, a binary or dummy variable, that equals 1 in summer months and 0 otherwise.
a. Determine the ordinary and inverse demand curves facing Yogi Bear Outdoors during the winter month of January if POG = 4 and I = 25.
b. Determine the ordinary and inverse demand curves facing Yogi Bear Outdoors during the summer month of July if all other price-related and business activity variables are as specified previously in part a.
c. Find the total and marginal revenue functions for Yogi Bear Outdoors during the summer months and find the total number of campsites rented and total revenue at the conditions listed above in part a if the campsites rent for $35 per day during the summer.
d. Is the demand for campsites during the summer more or less elastic than during the rest of the year? How do you know?