If the price of an airline ticket from JFK to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner Because the cross-price elasticity of demand is airline trips between JFK and LAS are |rooms per night to| Jrooms per night. , hotel rooms at the Big Winner and from Big Winner is debating decreasing the price of its rooms to $275 per night. Under the initial demand conditions, you can see that this would cause its total revenue to. price will always have this effect on revenue when Big Winner is operating on the Z. Decreasing the portion of its demand curve.
If the price of an airline ticket from JFK to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner Because the cross-price elasticity of demand is airline trips between JFK and LAS are |rooms per night to| Jrooms per night. , hotel rooms at the Big Winner and from Big Winner is debating decreasing the price of its rooms to $275 per night. Under the initial demand conditions, you can see that this would cause its total revenue to. price will always have this effect on revenue when Big Winner is operating on the Z. Decreasing the portion of its demand curve.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the price of an airline ticket from JFK to LAS were to increase by 10%, from $200 to $220
roundtrip, while all other demand factors remain at their initial values, the quantity of rooms
demanded at the Big Winner
Because the cross-price elasticity of demand is
airline trips between JFK and LAS are
|rooms per night to|
Jrooms per night.
, hotel rooms at the Big Winner and
from
Big Winner is debating decreasing the price of its rooms to $275 per night. Under the initial demand
conditions, you can see that this would cause its total revenue to.
price will always have this effect on revenue when Big Winner is operating on the
Z. Decreasing the
portion of its demand curve.
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