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Big Winner is debating decreasing the price of its rooms to $125 per night. Under the initial demand conditions, you can see that this would
Big Winner is debating decreasing the price of its rooms to $125 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 Big Winner is operating on the portion of its demand curve. (Hint: Remember to reset any values you changed in the graph to their initial values by clicking on the circular arrow that appears next to the selected white field.)
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