Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski season. However, there is some ski demand in the spring and even fall months. The summer months can also be busy as visitors often come for summer vacation to go hiking on the mountain trails. The owner of Nature Trails would like to make a forecast for each season of the next year. Total annual demand has been estimated at 4,000 visitors. Given the last two years of historical data, what is the forecast for each season of the next year

Fall            304

Winter    1,974

Spring     716

Summer  1,006

total         4,000      

Explanation:

The historical data is missing, so I looked for a similar question and found this:

SeasonYear 1Year 2

Fall          208243

Winter1,3601,574

Spring  509554

Summer   719774

total         2,796     3,145

if the forecast for total demand during next year is correct, total demand should increase by [(4,000 / 3,145) - 1] x 100 = 27.186% or 855 more customers.

we must determine the % of total demand per season:

SeasonYear 1     %                       Year 2            %

Fall          208   7.44%                    243            7.73%

Winter1,36048.64%                  1,574          50.05%

Spring  50918.20%                    554           17.62%  

Summer   71925.72%                 774          24.60%

total         2,796      100%                    3,145           100%

the average % for each season:

Fall          7.59%            x 4,000 = 303.6 ≈ 304

Winter49.35%           x 4,000 = 1,974

Spring  17.91%            x 4,000 = 716.4 ≈ 716

Summer  25.15%           x 4,000 = 1,006

total           100%        

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.