Untitled document - Goo.. P The Success And Go MindTap - Cengage Lear. Bb Villanelles Blog - 2023 S.. CENGAGE MINDTAP Chapter 05 Homework ( Dollars per room) Quantity 150 Demanded (Hotel rooms per night) 8 8 8 8 828 PRICE (Dollars per room) Demand Factors Demand Average Income 40 (Thousands of dollars) Airfare from PIT to 200 ACY o ( Dollars per 0 50 100 150 200 250 300 350 400 450 500 roundtrip) QUANTITY (Hotel rooms) Room Rate at 250 Continental (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Rivers is charging $350 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 Rivers _ from rooms per night to rooms per night. Therefore, the income elasticity of demand is Z , meaning that hotel rooms at the Rivers are If the price of a room at the Continental were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Rivers __ from rooms per night to rooms per night. Because the cross-price elasticity of demand is , hotel rooms at the Rivers and hotel rooms at the Continental are Rivers is debating decreasing the price of its rooms to $325 per night. Under the initial demand conditions, you can see that this would cause its total revenue to . Decreasing the price will always have this effect on revenue when Rivers is operating on the portion of its demand curve. Grade It Now Save & Continue MacBook Air DO F10 * # m 89 LO - 0 O m C LL ICENGAGE MINDTAP Chapter 05 Homework Graph Input Tool Market for Rivers's Hotel Rooms Price 350 ( Dollars per room) Quantity 150 Demanded (Hotel rooms per night) 8 58 8 8 8 8 2 8 8 . PRICE (Dollars per room) Demand Factors Demand Average Income ( Thousands of dollars) Airfare from PIT to 200 ACY ( Dollars per 0 50 100 150 200 250 300 350 400 450 500 roundtrip) QUANTITY (Hotel rooms) Room Rate at 250 Continental (Dollars per night) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Rivers is charging $350 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 Rivers _ from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Rivers are If the price of a room at the Continental were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Rivers __ from rooms per night to rooms per night. Because the cross-price elasticity of demand is V, hotel rooms at the Rivers and hotel rooms at the Continental are $325 ner night Under the initial dem MacBook Air * 1 # m 89 LO Z