Read the following description carefully; and answer the question that follows. Your business recently has increased the room price by $5 from $75 to $80. During the past (in similar seasons with similar events in town), the average occupancy rates were 75%. With the new price, however, the occupancy rate has fallen to 72%. What is your conclusion about the impact of the room price changes on the demand? The demand is elastic. Price increase must be very carefully determined. The demand is not elastic. Price increase (to a certain degree) can be easily determined. Price changes of the hotel room and the demand are indifferent to each other, None of the above