Suppose Raphael, the owner-manager of a local hotel, projects the following demand for his rooms: Price Quantity Purchased ($) (per Day) 90 200 135 180 180 140 The price elasticity of demand between $90 and $135 is_____ in absolute value. This means that if Raphael raises the price from $90 to $135, his total revenue will______ (rise/fall/constant). The price elasticity of demand between $135 and $180 is______ in absolute value. This means that if Raphael raises the price from $135 to $180, his total revenue will_________(rise/fall/constant)
Suppose Raphael, the owner-manager of a local hotel, projects the following demand for his rooms: Price Quantity Purchased ($) (per Day) 90 200 135 180 180 140 The price elasticity of demand between $90 and $135 is_____ in absolute value. This means that if Raphael raises the price from $90 to $135, his total revenue will______ (rise/fall/constant). The price elasticity of demand between $135 and $180 is______ in absolute value. This means that if Raphael raises the price from $135 to $180, his total revenue will_________(rise/fall/constant)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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8. Critical analysis Q13
Suppose Raphael, the owner-manager of a local hotel, projects the following demand for his rooms:
|
|
Quantity Purchased
|
|---|---|
|
($)
|
(per Day)
|
| 90 | 200 |
| 135 | 180 |
| 180 | 140 |
The price elasticity of demand between $90 and $135 is_____ in absolute value. This means that if Raphael raises the price from $90 to $135, his total revenue will______ (rise/fall/constant).
The price elasticity of demand between $135 and $180 is______ in absolute value. This means that if Raphael raises the price from $135 to $180, his total revenue will_________(rise/fall/constant) .
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