Average American household income= $50,000 per yearRound trip airefare from Pittsburgh to Atlantic= $250 per tripRoom rate at the mountaineer hotel and casino, near lakes= $200 per night

MindTap - Cengage Lear... C 1. For each of the regions. C 2. Calculating the price el... G Suppose that during the.. B US CENGAGE |MINDTAP Homework (Ch 05) Graph Input Tool (?) E 500 Market for Lakes's Hotel Rooms 450 Price 350 400 (Dollars per room) 350 Quantity Demanded 150 (Hotel rooms per night) PRICE (Dollars per room) Demand Factors Demand Average Income 50 Thousands of ? dollars) Airfare from PIT to 250 ACY ( Dollars per 50 100 150 200 250 300 350 400 450 500 roundtrip) QUANTITY (Hotel rooms) Room Rate at 200 Mountaineer (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Lakes 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 Lakes _ from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Lakes are If the price of an airline ticket from PIT to ACY were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors remain at their Initial values, the quantity of rooms demanded at the Lakes _ from rooms per night to rooms per night. Because the cross-price elasticity of demand is , hotel rooms at the Lakes and airline trips between PIT and ACY are Lakes 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 . Decreasing the price will always have this effect on revenue when Lakes is operating on the portion of its demand curve. 26 20