Hotel Room Pricing A hotel has 500 rooms. During a typical week in the holiday season, the hotel is busy on Monday, Tuesday, Wednesday, and Thursday nights, primarily with business people, but there is generally space available on Friday, Saturday, and Sunday nights. Hotel management provided the following demand estimates, as shown in Table 8.1: Assume linear demand functions over the range of all non-negative room rates and demands. Table 8.1: Demand Estimates Estimated Demand Room Rate Days (rooms/day) $160 Mon, Tue, Wed, Thur 500 Fri, Sat, Sun 200 $175 Mon, Tue, Wed, Thur 350 Fri, Sat, Sun 125

Hotel Room Pricing A hotel has 500 rooms. During a typical week in the holiday season, the hotel is busy on Monday, Tuesday, Wednesday, and Thursday nights, primarily with business people, but there is generally space available on Friday, Saturday, and Sunday nights. Hotel management provided the following demand estimates, as shown in Table 8.1: Assume linear demand functions over the range of all non-negative room rates and demands. Table 8.1: Demand Estimates Estimated Demand Room Rate Days (rooms/day) $160 Mon, Tue, Wed, Thur 500 Fri, Sat, Sun 200 $175 Mon, Tue, Wed, Thur 350 Fri, Sat, Sun 125

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 9E

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