Graph Input Tool Market for Big winner's Hotel Rooms 500 480 Price (Delars per room) 350 400 guantity demanded (Hotel reems per mght 150 300 200 250 Demand Factors 200 180 Average Income (Thousends of dolars) ber and 50 100 Airfare from JFK to LAS (Delers per 250 reundtrp) *0 100 1sa 20a 200 200 0 40 40 s00 QUANTITY (Hatel rooms) Room Rate at Lucky (Dellars per mght 200 or each of the following scenarios, begin by assuming that all demand factors are set to their ariginal values and Big winner is charging $350 per oom per night. average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner rises from rooms per night to rooms per night. Therefore, the income elasticity of demand is meaning that otel rooms at the Big Winner are PRICE IDolars per roomi
Graph Input Tool Market for Big winner's Hotel Rooms 500 480 Price (Delars per room) 350 400 guantity demanded (Hotel reems per mght 150 300 200 250 Demand Factors 200 180 Average Income (Thousends of dolars) ber and 50 100 Airfare from JFK to LAS (Delers per 250 reundtrp) *0 100 1sa 20a 200 200 0 40 40 s00 QUANTITY (Hatel rooms) Room Rate at Lucky (Dellars per mght 200 or each of the following scenarios, begin by assuming that all demand factors are set to their ariginal values and Big winner is charging $350 per oom per night. average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner rises from rooms per night to rooms per night. Therefore, the income elasticity of demand is meaning that otel rooms at the Big Winner are PRICE IDolars per roomi
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Graph Input Tool
Market for Big Winner's Hotel Rooms
500
Price
(Dollers per room)
450
350
400
Quantity
Demanded
(Hotel rooms per
night)
150
360
复 300
250
Demand Factors
200
180
Average Income
(Thousends of
dolars)
bemand
50
100
Airfare from JFK to
250
LAS
(Dollars per
roundtrip)
D 50 100 153 200 200 200 350 400 450 500
QUANTITY (Hotel rooms)
Room Rate at Lucky
(Dolars per night)
200
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Big Winner is charging $350 per
room per night.
If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner
rooms per night to
vmeaning that
rises from
rooms per night. Therefore, the income elasticity of demand is
hotel rooms at the Big Winner are
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