i Chrome File Edit View History Bookmarks Profiles Tab Window Help @ a 74%@- . . > Giveon Heartbreak Annivers X Min Tap - Cengage Learning x C The following graph input too (- C' a ng.cengage.com 6 Google > YouTube ' Gmail V Government of On... mi. HomepageCent... ! Home-mycente... 5\" CENGAGE ' MINDTAP Q Search this course 0 : Mohsin Rasheed V Assignment 1 0 x Back to Assignment 28 . Application: Elast ity and hotel rooms 4 Attempts 0.4 I I Keep the Highest 0.4 / 3 The following graph input tool shows the daily demand for hotel rooms at the Peacock 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. (Note: All values are hypothetical.) I Demand Factor Initial Value Average Canadian household income $40,000 per year Round trip airfare from Toronto (YYZ) to Las Vegas (LAS) $250 per round trip Room rate at the Grandiose Hotel and Casino, which is near the Peacock $250 per night Use the graph input tool to help you answer the following questions. You will not be scored 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 eld will change accordingly. ! i Chrome File Edit View History Bookmarks Profiles Tab Window Help @ a 74%@- . . > Giveon Heartbreak Annivers X Min Tap - Cengage Learning x C The following graph input too (- C' a ng.cengage.com 6 Google > YouTube ' Gmail V Government of On... mi. HomepageCent... ! Home-myLente... 5\" CENGAGE ' MINDTAP Q Search this course 0 : Mohsin Rasheed V Assignment 1 0 x Use the graph input tool to help you answer the following questions. You will not be scored 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 eld will change accordingly. Graph Input Tool 500 ,, Market for Peacock's Hotel Rooms 450 D Price 400 (Dollars per room) A Quantity 5 350 Demanded 350 8 (Hotel rooms per 3'; 300 flight) a. m 5 250 . 9, 200 Demand Factors (alt 8 _ E 150 temand Average Income 0- 100 | \\ (Thousands of I dollars) 50 | Airfare from YYZ to LAS D l (Dollars per round 0 50 100 150 200 250 300 350 400 450 500 tHP) QUANTITY (Hotel rooms) Room Rate at Grandiose (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Peacock is charging $150 per room per night. j' Chrome File Edit View History Bookmarks Profiles Tab Window Help @ @ 74%@r . . > Giveon Heartbreak Annivers X MindTap - Cengage Learning x C The following graph input too (- C' ng.cengage.com 6 Google > YouTube ' Gmail V Government of On... mi. HomepageCent... ! Home-my.cente... 5\" CENGAGE ' MINDTAP Q Search this course 0 : Mohsin Rasheed V Assignment 1 0 x 1' 50 Airfare from YYZ to I ms 0 l (D_o/Iars per round 0 50 100 150 200 250 300 350 400 450 500 mp) ' QUANTITY (Hotel rooms) Room Rate at Grandiose (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Peacock is charging $150 per room per night. If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Peacock V from I C] rooms per night to C] rooms per night. Therefore, the income elasticity of demand is V , meaning that hotel rooms at the Peacock are V . If the price of an airline ticket from YYZ to LAS were to increase by 20%, from $250 to $300 round trip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Peacock v from [: rooms per night to C] rooms per night. Because the cross- price elasticity of demand is V , hotel rooms at the Peacock and airline trips between YYZ and LAS are V . Peacock is debating decreasing the price of its rooms to $125 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 Peacock is operating on the \\ Grade It Now Save & Continue Continue without saving V portion of its demand curve. \"ma menu