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LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss,
German, Austrian, and Italian skiers, all of its beds are always booked in the winter season and
there are, on average, 1,200 skiers in the village. On average, skiers stay in LaVilla for 10 days.
a. How many new skiers are arriving—on average—in LaVilla every day?
b. A study done by the largest hotel in the village has shown that skiers spend on average
$50 per person on the first day and $30 per person on each additional day in local
restaurants. The study also forecasts that—due to increased hotel prices—the average
length of stay for the 2003/2004 season will be reduced to five days. What will be the
percentage change in revenues of local restaurants compared to last year (when skiers
still stayed for 10 days)? Assume that hotels continue to be fully booked!

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