all demand factors are set to their original values and that Triple Sevens is charging $350 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Triple Sevens are If the price of an airline ticket from YYZ to LAS were to increase by 20%, from $250 to $300 round trip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Because the cross- price elasticity of demand is , hotel rooms at the Triple Sevens and airline trips between YYZ and LAS are Triple Sevens is debating decreasing the price of its rooms to $325 per night. Under the initial demand conditions, you can see that this would cause its total revenue to 2. Decreasing the price will always have this effect on revenue when Triple Sevens is operating on the portion of its demand curve