For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Triple Sevens is charging $350 perroom per night.If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Triple SevensRises /Fals fromrooms per night torooms per night. Therefore, the income elasticity of demand is Postive / Negative , meaning thathotel rooms at the Triple Sevens are Normal Good /Interior GoodIf 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 initial values,the quantity of rooms demanded at the Triple Sevens Rises /Fals fromelasticity of demand is _Postive / Negative , hotel rooms at the Triple Sevens and hotel rooms at the Exhilaration are Complements / Substhdesrooms per night torooms per night. Because the cross-priceTriple Sevens is debating decreasing the price of its rooms to $325 per night. Under the initial demand conditions, you can see that this would causeits total revenue tu brease/Decrease, Decreasing the price will always have this effect on revenue when Triple Sevens is operating on theElaste / Inelaste portion of its demand curve. 6. Application: Elasticity and hotel roomsThe 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 hotelmanagement better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demandfactors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool.Demand FactorInitial ValueAverage American household income$40,000 per yearRoundtrip airfare from San Francisco (SFO) to Las Vegas (LAS)$200 per roundtripRoom rate at the Lucky Hotel and Casino, which is near the Big Winner$250 per nightUse the graph input tool to helpanswer the following questions. You will not be graded on any changesmake 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 ToolMarket for Big Winner's Hotel Rooms500450I Price(Dollars per room)350400QuantityDemanded(Hotel rooms pernight)150350300250Demand Factors200150Average Income(Thousands ofdollars)Demand4010050Airfare from SFO toLAS(Dollars perroundtrip)20050100 150 200 250 300 350 400 450 500QUANTITY (Hotel rooms)Room Rate at Lucky(Dollars per night)250PRICE (Dollars per room)

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