20 Jun Tourist Price Sensitivity And The Elasticity Of Demand: The Case Of BC Ferries.”
Please use attached PDF document to anser the questions below:
1. Based on what you know about demand elasticity, give an assessment of the method the author uses to calculate the ferry transport price elasticity. Feel free to comment on the data and assumptions used in the calculations. Are the estimates in line with what you would expect for this type of service? Comment briefly.
2. One of the issues we emphasized in class was the importance of knowing elasticities for pricing purposes. This is addressed to some extent in the ‘Strategic Responses’ section of the paper. Please select two options in that section and comment on them. Feel free to critique if necessary. Are there any additional strategic options you would suggest? Explain briefly.
Two to three pages maximum, please.
PLEASE BE AS DIRECT AN CONCISE IN WRITING AS POSSIBLE.
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