\fFor each of the following scenarios, begin by assuming that all demand factors are set to their original values and Rivers is charging $300 per room per night. If average househo d income increases by 10%, from 550,000 to $55,000 per year, the quantity of rooms demanded at the Rivers V from rooms per night to rooms per night. Therefore, the income elasticity of demand is V , meaning that hotel rooms at the Rivers are T If the price of a room at the Continental were to decrease by 10%, from 5250 to 5225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Rivers V from rooms per night to rooms per night. Because the cross-price elasticity of demand is V , hotel rooms at the Rivers and hotel rooms at the Continental are V . Rivers is debating decreasing the price of its rooms to 52?5 per night. Under the initial demand conditions, you can see that this would cause its total revenue to V . Decreasing the price will always have this effect on revenue when Rivers is opelating on the 7 portion of its demand curve