A local hotel charges $80.00 per night. The average number of rooms sold at this rate is 50. The hotel decides to increase the room rate to $95.00. The average number of rooms sold at this rate is 40. Compute the elasticity coefficient. What can you conclude about the price elasticity of demand? (5) b. Use the total revenue test to confirm your answer. Explain. (5) c. State two factors that might explain consumer responsiveness