11 . Application: Elasticity and hotel rooms

The 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 hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. (Note: All values are hypothetical.)

Demand Factor	Initial Value
Average Canadian household income	$40,000 per year
Round trip airfare from Toronto (YYZ) to Las Vegas (LAS)	$250 per round trip
Room rate at the Lucky Hotel and Casino, which is near the Big Winner	$250 per night

Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make 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.