ECO 555 Managerial Economics Fall 2022 – Tourist Price Sensitivity Case Paper

Read the case “Tourist price sensitivity and the elasticity of demand: The case of BC ferries.” Then write a case report that
addresses the following questions, being sure to refer to and include class concepts and material in your discussion where
appropriate:
-Critically assess the method the author uses to calculate the price elasticity of the ferry transport.

Comment on the data, selection of sample, variables used, and assumptions used in the calculations and any biases that may
result. Is the author thinking of the product correctly i.e. what is the product as defined by the author? Is this the same way
consumers think of the product? Explain.
-Are the estimates consistent with what you expect? Why or why not? Make sure to
think about this by thinking about the specific determinants of price elasticity of demand. Make sure to think about the product definition and whether the elasticity in the case is consistent with that product.
Are there any strategic options you would suggest to increase revenues? You may not use the suggestions in the last section of the case. I am looking for your own creative and original ideas. Please be very specific and creative (i.e. a generic answer like ‘improve marketing’ will not earn credit)
Three pages maximum,