Demand Factor

Initial Value

Average American household income $$50,000$ per year

Roundtrip airfare from Des Moines $($DSM$)$ to Atlantic City $($ACY$)$ $$250$ per roundtrip

Room rate at the Continental Hotel and Casino, which is near the Rivers $$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.

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PRICE $($Dollars per room$)$

QUANTITY $($Hotel rooms$)$

Demand

Graph Input Tool

Market for Rivers's Hotel Rooms

Price

$($Dollars per room$)$

$350$

Quantity Demanded

$($Hotel rooms per night$)$

$150$

Demand Factors

Average Income

$($Thousands of dollars$)$

$50$

Airfare from DSM to ACY

$($Dollars per roundtrip$)$

$250$

Room Rate at Continental

$($Dollars per night$)$

$200$