Holding all else constant, a higher price for ski lift tickets would be expected to:

Question

Quizplus · Accepted Answer

A higher price for ski lift tickets would make skiing more expensive, and consequently, fewer people would be willing to pay, reducing the demand for ski tickets, decreasing ski sales, and ultimately leading to a decrease in supply as ski resorts would be less profitable. Thus, option B is the best choice. Option A is incorrect because an increase in ski lift ticket prices would discourage people from skiing, decreasing the number of skiers. Option C is incorrect because there is no direct relation between higher ski lift prices and winter recreational activities. Option D is incorrect because, although higher ski lift prices may lead to fewer ski resorts, it is not a necessary outcome, and there are other factors, such as weather conditions, that can influence the supply of ski resorts.

Holding All Else Constant, a Higher Price for Ski Lift