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Disney just raised its 3 day 3 park pass from $110.00 to $121.00.
Sales fell from 4,000 per week to 3,000 per week.
1. Calculate the price elasticity of demand using the arc elasticity of demand formula.
2. Is demand elastic or inelastic? Why?
3. Did Disney management do the right thing? Why?
4. What should they do next? (Hint - look at revenues)
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