Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)
Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hello could you please answer this ? If the
Transcribed Image Text:6. Application: Elasticity and hotel rooms
The falowing graph ingut tool shows the daly demand fer hetel roama at the Big Winer Hotel and Casino in Las vegan, Nevada. Ta hela the hotel
management better understand the market, an ecananist identifed three primary factars that affect the derand far rooms esch night. These demand
factorm, alang with the vaes carreponding ta the intal demand carve, are shown in the fallowing bable and alonguide the graph input tool.
Demand Facter
Initial Value
Average American househald inceme
140,000 per yer
Roundtrip airfare from San Prancisco (Sro) to Las Vegas (LAS)
$200 per roundtrip
Reom rate at the Luky Hotel and Casina, which is near the Big Winner 50 per night
Use the graph input tool to telp you ansrer the foloning questions. You ml not be graded on any changes you make to this graph.
Note: Once you enter a valie in a white feld, the graph and any comespending amsunts in each grey feld wil changn accordings
Graph Input Tool
Market for Big Winner's Hotel Rooms
Pice
(Dlas per reem
guantity
360
400
150
Bemanded
(e per
200
nght
Demand Factors
200
Average Income
heusands of
dlars)
100
Airfare from SrO to
LAS
200
(Dallas per
roundtri
* 100 1 e mo 0 4a s
QUANTITY en)
Roam Rate at Lucky
(Dales per nght
250
ad aon
Transcribed Image Text:om per ight.
fom
rnomns per nght to nons per nigt. Theor, be icoe easicty afdenand s hae n, meaning that
hotel roons at the Trple Severs are u bod hew dad
l'be prca e a om athe Enhlanto we to decrese by 10%, fom $250 to$22, hil a cher enand oatos emah at ter htal voles,
the qurty d rons demanded at te ripe Sevens hom han from
dasticty of denand is , he roms at the ripe Svens and hotel roms at te bhlenton are owni sa
rooms per night to
roons per night. Because the cros prce
riple Seves s debatig decrasing he price is rons to $325 pr ight. Undr tbe intal denand condtions, yo Cn se tht thi woud coue
porton of ts denand curve
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