Homework (Ch 05) PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Market for Rivers's Hotel Rooms Price 350 (Dollars per room) Quantity 150 Demanded (Hotel rooms per night) Demand Factors Demand Average Income 50 (Thousands of dollars) Airfare from MSY to 200 ACY (Dollars per roundtrip) 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Room Rate at Continental (Dollars per night) 250 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demande rooms per night to rooms per night. Therefore, the income elasticity of demand is ' meanin If the price of an airline ticket from MSY to ACY were to increase by 10%, from $200 to $220 roundtrip, while all oth