In July 2012,it cost $125 to purchase a ticket to visit the parks at Disneyland for one day.A five-day pass to the same parks cost only $290.Disneyland charges less for the additional days because of
A) the real-income effect.
B) diminishing marginal utility.
C) marginal utility.
D) the substitution effect.
E) the consumer optimum.

Question

Quizplus · Accepted Answer

The reason Disneyland charges less for the additional days is due to diminishing marginal utility. This means that as a consumer spends more time at the park, the enjoyment they receive from it decreases. Therefore, Disneyland offers a discount for longer visits to entice consumers to purchase the five-day pass instead of just buying individual tickets for each day.

In July 2012,it Cost $125 to Purchase a Ticket to Visit