CENGAGE|MINDTAP Module Three Quiz Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool (?) 500 Market for Triple Sevens's Hotel Rooms 450 Price 300 (Dollars per room) Quantity 200 Demanded Hotel rooms per night) PRICE (Dollars per room) Demand Factors Demand Average Income 50 (Thousands of dollars) Airfare from SFO to 250 LAS (Dollars per 50 100 150 200 250 300 350 400 450 500 roundtrip) QUANTITY (Hotel rooms) Room Rate at 200 Exhilaration (Dollars per night) ing o search O n P 144 F 10 F 12 F8 F3 F4 FS FE F & % 32 X us Oil Sp @ Login G Sign ir Classe G Sign it apliac . Midpc Q Chapt ISDIVE G 4. App Ra Supply By Radic ) Sig cb/ui/evo/index.html?deploymentld=59814123535024641902430425168leISBN=9780357133576&id=1365918995&snapshotld=27227868 opping Cart | Ze... mySNHU Login Class BUS-206: Busi.. 3 BankMobile: Accoupouring on the Pou.. ClassLink for DoDEA CENGAGE | MINDTAP dule Three Quiz ck to Assignment Attempts Keep the Highest / 3 20. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for hotel rooms at the Triple Sevens Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $50,000 per year Roundtrip airfare from San Francisco (SFO) to Las Vegas (LAS) $250 per roundtrip Room rate at the Exhilaration Hotel and Casino, which is near the Triple Sevens $200 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. (? Graph Input Tool Market for Triple Sevens's Hotel Rooms 500 Oaplia chapt x * 4. Supply x 1 3 b/ui/evo/index.html?deploymentld=5981412353502464190243042516&elSBN=9780357133576&id=1365918995&snapshotld=2722786& oping Cart | Ze.. mySNHU Login Class BUS-206: Busi. 3 BankMobile: Accou CENGAGE | MINDTAP E Pouring on the Pou. ClassLink for DoDEA Jule Three Quiz 0 50 100 150 200 250 300 350 400 450 500 (Dollars per roundtrip) QUANTITY (Hotel rooms) Room Rate at Exhilaration 200 (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and 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 rises from 150 rooms per night to 200 rooms per night. Therefore, the income elasticity of demand is positive , meaning that hotel rooms at the Triple Sevens are _a normal good If the price of an airline ticket from SFO to LAS 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 Triple Sevens falls from 150 rooms per night to 100 rooms per night. Because the cross-price elasticity of demand is negative V , hotel rooms at the Triple Sevens and airline trips between SFO and LAS are_co mplements 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 _increase V . Decreasing the price will always have this effect on revenue when Triple Sevens is operating on the elastic portion of its demand curve. Grade It Now Save & Continue Continue without saving O m arch INSERT F12 144 FB F9 F10 F11 F 7 F6 FS 3 F4