Instructions: You are required to answer the following questions. Please do not repeat the questions on your answer sheet. Instead, please list the answers numerically /sequentially by simply utilizing 1, 2, 3, and 4. For each assignment, you are expected to answer the assigned questions in your own words.

1. Describe the income multiplier. How is it calculated? How does leakage affect it? Why?

2. How important is price in determining demand for travel? Is price a consideration for all travelers? Who is most likely to be affected by price changes? How can price be used to moderate demand – i.e. how can it control demand?

3. What is tourism policy? Why is tourism policy important?

4. What is destination sustainability? What factors determine if a tourism destination sustainable?

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