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Suppose you are a market analyst specializing in theme parks, and you're examining Disneyland's stock. The Wall Street Journal reports that tourism has slowed down in the United States. At Six Flags Magic Mountain in Valencia, CA, a new Viper roller coaster is now operating and another new ride, Psyclone, will be opening this year. Using demand and supply analysis, predict the impact of these events on ticket prices and attendance at Disneyland. As reported in the WSJ, Disneyland slashed ticket prices and admitted that attendance was somewhat lower. Is this consistent with your prediction using demand and supply analysis? In light of the fact that both output and price were falling at Disneyland, is the law of demand being violated? Use a supply and demand diagram to justify your answer.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M963214

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