The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $50,000 per year Roundtrip airfare from New York (JFK) to Las Vegas $100 per roundtrip (LAS) Room rate at the Lucky Hotel and Casino, which is near the Big Winner $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool (? Market for Big Winner's Hotel Rooms 500 450 IPrice (Dollars per room) 200 400 350 Quantity Demanded (Hotel rooms per night) 300 300 250 200 150 Demand 100 Demand Factors 50 Average Income (Thousands of dollars) 50 100 150 200 250 300 350 400 450 500 50 QUANTITY (Hotel rooms) Airfare from JFK to LAS (Dollars per roundtrip) 100 Room Rate at Lucky (Dollars per night) 250 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $200 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms per night. , meaning that hotel rooms at the Big rooms demanded at the Big Winner v from rooms per night to Therefore, the income elasticity of demand is Winner are If the price of an airline ticket from JFK to LAS were to increase by 10%, from $100 to $110 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner v from rooms per night to , hotel rooms at the Big Winner and airline trips rooms per night. Because the cross-price elasticity of demand is between JFK and LAS are Big Winner is debating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, you can see that this would cause its total revenue to Decreasing the price will always have this effect on revenue when Big Winner is operating on the portion of its demand curve. PRICE (Dollars per room)