Overview
Hello, I need help reading the attached article and answering the following questions.
-Critically assess the method the author uses to calculate the price elasticity of the ferry transport. Comment on the data, variables, and assumptions used in the calculations. What is the product as defined by the author? Is this the same way consumers think of the product?
-Are the estimates consistent with what you expect? Why or why not? Make sure to think about the determinants of price elasticity of demand.
-Price elasticities are very important for setting prices. Are there any strategic options you would suggest to increase revenues? I am looking for creative and original ideas.