If you visited Disneyland between 1955 and 1982, you could not to go moist rides
ID: 1210820 • Letter: I
Question
If you visited Disneyland between 1955 and 1982, you could not to go moist rides without buying ride-in addition to the ticket necessary to enter the park. This pricing strategy earned Disney lower profits than the current strategy visitors to put purchase a ticket to enter the park but not requiring an additional ticket to be purchased for each ride. The current pricing strategy has increased deadweight loss that Disney transforms into profit decreased consumer surplus that Disney transforms into revenue. increased produce surplus that Disney transforms into profit. increased consumer surplus that Disney transforms into profit.Explanation / Answer
The correct answer is option D: Increased consumer surplus that Disney transforms into profit.
The reason is when the consumers get a service or a good for a price that is less than the highest that they are willing or bound to pay, this will monetary gain for the consumers which will directly account for an increase in consumer consumption. Hence when the visitors receive the service at a cheaper cost then most more number of visitors will be visiting Disney thereby increasing the consumer surplus.