Homework Help is Here – Start Your Trial Now!
Business
Economics
Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)

Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...
See similar textbooks
icon
Related questions
Question

Hello could you please answer this ? If the price of a room at the Exhilaration were to decrease by 10%, from $250 to $225, while all other demand factors remain at their inital values, the quantiy of rooms demanded at the Triple Sevens (Rises/Falls) from___rooms per night to ___rooms per night. Because the cross price elasticity of demand is (Positive/Negative), hotel rooms at the Triple Sevens and hotel rooms at Exhilaration are (Complements/Substitute)

6. Application: Elasticity and hotel rooms The falowing graph ingut tool shows the daly demand fer hetel roama at the Big Winer Hotel and Casino in Las vegan, Nevada. Ta hela the hotel management better understand the market, an ecananist identifed three primary factars that affect the derand far rooms esch night. These demand factorm, alang with the vaes carreponding ta the intal demand carve, are shown in the fallowing bable and alonguide the graph input tool. Demand Facter Initial Value Average American househald inceme 140,000 per yer Roundtrip airfare from San Prancisco (Sro) to Las Vegas (LAS) $200 per roundtrip Reom rate at the Luky Hotel and Casina, which is near the Big Winner 50 per night Use the graph input tool to telp you ansrer the foloning questions. You ml not be graded on any changes you make to this graph. Note: Once you enter a valie in a white feld, the graph and any comespending amsunts in each grey feld wil changn accordings Graph Input Tool Market for Big Winner's Hotel Rooms Pice (Dlas per reem guantity 360 400 150 Bemanded (e per 200 nght Demand Factors 200 Average Income heusands of dlars) 100 Airfare from SrO to LAS 200 (Dallas per roundtri * 100 1 e mo 0 4a s QUANTITY en) Roam Rate at Lucky (Dales per nght 250 ad aon
Transcribed Image Text:6. Application: Elasticity and hotel rooms The falowing graph ingut tool shows the daly demand fer hetel roama at the Big Winer Hotel and Casino in Las vegan, Nevada. Ta hela the hotel management better understand the market, an ecananist identifed three primary factars that affect the derand far rooms esch night. These demand factorm, alang with the vaes carreponding ta the intal demand carve, are shown in the fallowing bable and alonguide the graph input tool. Demand Facter Initial Value Average American househald inceme 140,000 per yer Roundtrip airfare from San Prancisco (Sro) to Las Vegas (LAS) $200 per roundtrip Reom rate at the Luky Hotel and Casina, which is near the Big Winner 50 per night Use the graph input tool to telp you ansrer the foloning questions. You ml not be graded on any changes you make to this graph. Note: Once you enter a valie in a white feld, the graph and any comespending amsunts in each grey feld wil changn accordings Graph Input Tool Market for Big Winner's Hotel Rooms Pice (Dlas per reem guantity 360 400 150 Bemanded (e per 200 nght Demand Factors 200 Average Income heusands of dlars) 100 Airfare from SrO to LAS 200 (Dallas per roundtri * 100 1 e mo 0 4a s QUANTITY en) Roam Rate at Lucky (Dales per nght 250 ad aon
om per ight. fom rnomns per nght to nons per nigt. Theor, be icoe easicty afdenand s hae n, meaning that hotel roons at the Trple Severs are u bod hew dad l'be prca e a om athe Enhlanto we to decrese by 10%, fom $250 to$22, hil a cher enand oatos emah at ter htal voles, the qurty d rons demanded at te ripe Sevens hom han from dasticty of denand is , he roms at the ripe Svens and hotel roms at te bhlenton are owni sa rooms per night to roons per night. Because the cros prce riple Seves s debatig decrasing he price is rons to $325 pr ight. Undr tbe intal denand condtions, yo Cn se tht thi woud coue porton of ts denand curve
Transcribed Image Text:om per ight. fom rnomns per nght to nons per nigt. Theor, be icoe easicty afdenand s hae n, meaning that hotel roons at the Trple Severs are u bod hew dad l'be prca e a om athe Enhlanto we to decrese by 10%, fom $250 to$22, hil a cher enand oatos emah at ter htal voles, the qurty d rons demanded at te ripe Sevens hom han from dasticty of denand is , he roms at the ripe Svens and hotel roms at te bhlenton are owni sa rooms per night to roons per night. Because the cros prce riple Seves s debatig decrasing he price is rons to $325 pr ight. Undr tbe intal denand condtions, yo Cn se tht thi woud coue porton of ts denand curve
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Elasticity of demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
SEE MORE TEXTBOOKS