The following article (http://www.businessinsider.com/disney-demonstrates-definition-pricing-power-2015-11) depicts some pricing and attendance information at the Magic Kingdom at Walt Disney World in Orlando, Florida. Examine the article and its graphs to address the following questions:

a. What can one conclude about the price elasticity of the Magic Kingdom? Is it likely price elastic or price inelastic? Explain the rationale for your response.

b. Define the term “pricing power” and articulate how Disney is using its pricing power to its benefit.

c. Does the graph over the 2008 to 2014 period infer that there were other factors, such as the economy and not necessarily price, which were driving attendance figures at the Magic Kingdom? Explain.

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a Demand is price elastic when proportion change in price causes more than proportional change in qu... View the full answer