The Roof Top Resort sold 4,000 rooms with an ADR of $90.00 in the past month. During this month, the ADR is increased by $12.00 and the total number of rooms sold is now 3,700. What is the price elasticity of this demand? What is the effect of the decrease in the #of rooms to the total room revenue for the Roof Top Resort during this month?

.64 inelastic demand and $17,400 increase in total room revenue.

.58 elastic demand and $17,400 increase in total room revenue.

.64 elastic demand and $17,400 increase in total room revenue.

.58 inelastic demand and $17,400 increase in total room revenue.