A hotel at a beachside resort charges $225 per night for a standard room during the off-season. The hotel has 200 rooms and the average nightly vacancy rate is 20%. A nearby hotel of a similar standard charges $195 per night during the off-season. The manager of the first hotel estimates that if the price was decreased from $225 to $195 the vacancy rate would fall to 5% and total revenue would increase. Which of the following statements is correct? Justify your conclusion based upon your estimate of the price elasticity of demand (use the mid-point method to calculate the price elasticity of demand). Select one: O a. The price elasticity of demand is -1.20. Therefore demand is price elastic and total revenue will increase. O b. The price elasticity of demand is -0.83. Therefore demand is price inelastic and total revenue will decrease. O c. The price elasticity of demand is -0.83. Therefore demand is price inelastic and total revenue will increase. O d. The price elasticity of demand is -1.20. Therefore demand is price inelastic and total revenue will increase. O e. The price elasticity of demand is -1.20. Therefore demand is price elastic and total revenue will decrease. O f. The price elasticity of demand is -0.83. Therefore demand is price elastic and total revenue will decrease