gsi stuff - Kings Island Kings island offers different...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
King’s Island King’s island offers different prices for adults, children, seniors; season tickets, two day passes group passes Third-degree price discrimination Higher price is charged for adults because their demand is more inelastic Season ticket prices allow KI to extract more surplus New Hampshire’s tax policies A tax on an equilibrium will cause distortion and DWL Consumer and producer surplus decreases “Live Free or Die” = 0% sales tax and income tax There should be no distortion in the goods market and less distortion in the job market MA is a neighbor is a 6.25% sales tax; if one lived in the border they would want to shop at NH so MA gives two tax holidays NH tries to promote their lack of sales tax MA raised sales tax so in the substitution effect, NJ gains in demand and MA lose for normal goods Can we sell our mountains? Major portion of the Himalayan range falls in Nepal Fees or royalties for climbing mountain
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/16/2012 for the course ECON 101 taught by Professor Gerson during the Fall '08 term at University of Michigan.

Page1 / 2

gsi stuff - Kings Island Kings island offers different...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online