If the price of an airline ticket from DSM to ACY were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Lakes    from   rooms per night to   rooms per night. Because the cross-price elasticity of demand is    , hotel rooms at the Lakes and airline trips

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter3: Demand Analysis
Section: Chapter Questions
Problem 6E
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If the price of an airline ticket from DSM to ACY were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Lakes    from

 

rooms per night to

 

rooms per night. Because the cross-price elasticity of demand is    , hotel rooms at the Lakes and airline trips between DSM and ACY are

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