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Summer vacation travel prices are estimated to be 8-10% higher this year. A resort in Cancun decided to run a price promotion for room rentals.

Summer vacation travel prices are estimated to be 8-10% higher this year. A resort in Cancun decided to run a price promotion for room rentals. They know the elasticity of demand for resort rooms is -2.50. During the price promotion, they expect to be at full capacity with 500 rooms sold per night. Before the price drop, they sold an average of 350 rooms a night

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