Question

A common feature of skiing is waiting in lift lines.
Does the existence of lift lines mean the price is not working to allocate the scarce resource? If so, what should be done about it?

Answer 1

Answer:

The price should be increased to achieve a balance between supply and demand.

Explanation:

If visitors have to wait long for lift, this suggests that the demand is not matching the supply. In fact demand seems to be higher than supply which causes long wait for lift. An increase in price will cause the demand to fall and hence the supply will meet the demand and would result in less waiting for lifts.