Question

A ticket to Disneyland costs $150 and it takes you 6 hours to go through the whole park. An alternative to a regular ticket is to buy an "express pass" ticket, which allows you to skip waiting in lines and will cost you $200. If you buy the express pass instead of the regular ticket, it will take you 4 hours to go through the whole park. Other things constant, what is the minimum value of your time per hour that would induce you to buy the express ticket?

Answer 1

To find the minimum value of your time per hour that would induce you to buy the express ticket, compare the total costs of both options and set up an equation to solve for the minimum value per hour.

Step-by-step explanation:

The minimum value of your time per hour that would induce you to buy the express ticket can be found by comparing the total cost of buying the regular ticket and spending 6 hours at the park, to the total cost of buying the express pass and spending 4 hours at the park.

1. For the regular ticket, the total cost would be $150 plus the opportunity cost of 6 hours of your time.
2. For the express pass, the total cost would be $200 plus the opportunity cost of 4 hours of your time.
3. Set up an equation to find the minimum value of your time per hour:
   $150 + 6(hours) x (minimum value per hour) = $200 + 4(hours) x (minimum value per hour)
4. Now solve for the minimum value per hour to find the answer.