Applifallipe: Elasticity and hotel resms
table
Bemand Facter
Initial Walue
Average American househald income
340,000 per par
Evend trip airfare from New York (JFK) to Las wegas (Las)
Batifuer muns sye
Rosem rate at the Lucky Hetel and Casins, which is near the sig, Winner
$250 per nuye
Market for Big Winner’s Hotel Resoms
Demand Factors have two ment diflens: LES, pipllan per none twi Noom Nate ut lucky, meless perso
For thich of the following scenarios, begin by assuming that all demand flactors ave set to their original walues and that Big Winner is Cherphe 5350 per room per night.
If average household incleme increases by 50%, from $40,000 to $60,000 per yeas the fuancity of reoms demanded as the Big Winner q, from ◻ rooms per night top ◻ reams per night. Therefore, the income elanticity of demand in ◻ , . meaning the nater in ours at po Big Winter are ◻ Quantify of rooma demanded at the lig Winner q, from ◻ reams per night to ◻ reoma per night. Because the cress elestioly of demand is ◻◻ : total revenue to ◻◻ – portion of res demand ourve.
FILL IN BLANK DROP DOWN OPTIONS:
(falls or rises)
(negative or positive)
(falls or rises)
( negative or positive )
(substitutes, complements)
(decrease, increase)
(elastic or inelastic)
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