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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 Peacock's Hotel Rooms 500 450 I Price (Dollars per room) 150 400 Quantity Demanded (Hotel rooms per night) 350 350 300 250 Demand Factors 200 Demand 150 Average Income (Thousands of dollars) 40 100 Airfare from LAX to LAS (Dollars per roundtrip) 50 100 50 100 150 200 250 300 350 400 450 500 Room Rate at Grandiose (Dollars per night) QUANTITY (Hotel rooms) 200 PRICE (Dollars per room)

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 Peacock's Hotel Rooms 500 450 I Price (Dollars per room) 150 400 Quantity Demanded (Hotel rooms per night) 350 350 300 250 Demand Factors 200 Demand 150 Average Income (Thousands of dollars) 40 100 Airfare from LAX to LAS (Dollars per roundtrip) 50 100 50 100 150 200 250 300 350 400 450 500 Room Rate at Grandiose (Dollars per night) QUANTITY (Hotel rooms) 200 PRICE (Dollars per room)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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 Peacock's Hotel Rooms 500 450 I Price (Dollars per room) 150 400 Quantity Demanded (Hotel rooms per night) 350 350 300 250 Demand Factors 200 Demand 150 Average Income (Thousands of dollars) 40 100 Airfare from LAX to LAS (Dollars per roundtrip) 50 100 50 100 150 200 250 300 350 400 450 500 Room Rate at Grandiose (Dollars per night) QUANTITY (Hotel rooms) 200 PRICE (Dollars per room)
Transcribed Image Text: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 Peacock's Hotel Rooms 500 450 I Price (Dollars per room) 150 400 Quantity Demanded (Hotel rooms per night) 350 350 300 250 Demand Factors 200 Demand 150 Average Income (Thousands of dollars) 40 100 Airfare from LAX to LAS (Dollars per roundtrip) 50 100 50 100 150 200 250 300 350 400 450 500 Room Rate at Grandiose (Dollars per night) QUANTITY (Hotel rooms) 200 PRICE (Dollars per room)
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is charging $150 per room per night. If average household income increases by 25%, from $40,000 to $50,000 per year, the quantity of rooms demanded at the Peacock ▼ from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Peacock are If the price of a room at the Grandiose were to decrease by 20%, from $200 to $160, while all other demand factors remain at their initial values, the rooms per night to rooms per night. Because the cross-price elasticity of quantity of rooms demanded at the Peacock ▼ from demand is hotel rooms at the Peacock and hotel rooms at the Grandiose are Peacock is debating decreasing the price of its rooms to $125 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 Peacock is operating on the portion of its demand curve.
Transcribed Image Text:For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is charging $150 per room per night. If average household income increases by 25%, from $40,000 to $50,000 per year, the quantity of rooms demanded at the Peacock ▼ from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Peacock are If the price of a room at the Grandiose were to decrease by 20%, from $200 to $160, while all other demand factors remain at their initial values, the rooms per night to rooms per night. Because the cross-price elasticity of quantity of rooms demanded at the Peacock ▼ from demand is hotel rooms at the Peacock and hotel rooms at the Grandiose are Peacock is debating decreasing the price of its rooms to $125 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 Peacock is operating on the portion of its demand curve.
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