Holiday Inn Hotels has revealed the following information about its demand/supply schedules for its hotels in Toronto...

Price (room rate).................................Quantity of Rooms............................................................Quantity of Rooms

($/night)Demanded/nightSupplied/night

$200.................................................................30........................................................................................90

190.................................................................35.......................................................................................75

180.................................................................40.......................................................................................60

170.................................................................45.......................................................................................45

160.................................................................50.......................................................................................30

150.................................................................55.......................................................................................15

140.................................................................60........................................................................................0

(a)Draw the demand and supply curves illustrating the market for Holiday Inn Hotels in Toronto

(b) What is the equilibrium price and quantity of Holiday Inn Hotel rooms?

(c) What are the two key assumptions associated with the Demand/Supply Model?

(d) If Holiday Inn Hotels sets its room rental price at $190, what will be the condition of the market at this price? Describe how the market will adjust.

(e) Suppose that the following changes take place in the market for Holiday Inn hotel rooms.Use a separate demand/supply diagram in each case to show whether the demand or supply of Holiday Inn hotel rooms is affected.Only one side will be affected per question. Please show the change in equilibrium price and quantity as well...

(i) Best Western Hotel down the street has a one night sale and reduces the prices of its hotel rooms (all else equal)

(ii) Holiday Inn adds a new area to its hotel, allowing it to build more rooms (all else equal)

(iii) There is an increase in the price (room rate) of Holiday Inn hotel rooms (all else equal)

(iv) There is an increase in electricity prices, used to provide hotel services (all else equal)

(v) Due to lower gas prices, airlines reduce their ticket prices (all else equal)