What's Nc X (255) PHI X Homewor X MindTap - X Course H X C | Chegg.c x C Musashi x C Solved: S X C 12. Effect x C | Chegg.c X C Home | Cl X + C https:/g.cengage.com/staticb/ui/evo/index.html? deploymentld=58375321895011539225541353621&elSBN=9781337622387&snapshotld=3092203&... " * G *0 Khoi CENGAGE | MINDTAP Q Search this course ? My Home Homework (Ch 05) X Courses Attempts Average / 8 Catalog and Study Tools 7. Other elasticity of demand A-Z Rental Options The following graph input tool shows the daily demand for hotel rooms at the Big Winner Hotel and Casino in Las Vegas, Nevada. To help the hotel College Success Tips management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand O factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Career Success Tips RECOMMENDED FOR YOU Demand Factor Initial Value Average American household income $40,000 per year Study Tools Round trip airfare from New York (JFK) to Las Vegas (LAS) $200 per round trip Room rate at the Lucky Hotel and Casino, which is near the Big Winner $200 per night Study Tools for Principles of bongo Economics . . . . Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. ? Help Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Give Feedback A+ Graph Input Tool (? 500 Market for Big Winner's Hotel Rooms 450 Price 2001 400 (Dollars per room) O Quantity 350 300 Demanded per room) Hotel rooms per 300 night{0) What'sh x I II (255) Pr X I 3 Homewc X of; MindTap X H Courser X I G lChegg X I Musashi X I Solved:5 x I 12,Effec X I |Chegg X I G Homelf X I + v (- C' E https:/g.cengage.com/staticb/ui/evo/index.htmI?dep|oyment|d:58375321895011539225541353621&elSBN=9781337622387&snapshot|d=3092203&... [I] i} E: *- I] \"a E ; Khoi V a. CENGAGE I MINDTAP Q Search this course My Home Homework (Ch 05) o x g 250 Courses 200 Demand Factors LLI E 150 Average Income Catalog and Study Tools in. 100 (Thousands of dollars) 50 Airfare from JFK to Rental Options LAS 0 i (Dollars per round 0 so 100 150 200 250 300 350 400 A50 500 trip} 73 College Success Tips QUANTITY (Hotel rooms) Room Rate at Lucky (Dollars per night) a Career Success Tips RECOMMENDED FOR YOU For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Big Winner is charging $200 per room per night. A] If average household income increases from $40,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner V from :I Study Too|s for rin'aps of rooms per night to :I rooms per night. Therefore, the income elasticity of demand is V , meaning that hotel rooms at the Big Economics Winner are V . If the price of a room at the Lucky were to decrease from $200 to $160, while all other demand factors remain at their initial values, the quantity of 0 Help . . . . . . . rooms demanded at the Big Winner V from rooms per night to rooms per night. Because the crosselasticity of demand Is V , hotel rooms at the Big Winner and hotel rooms at the Lucky are V . (Hint: Remember to reset any E] Give Feedback values you changed in the graph to their initial values by clicking on the circular arrow that appears next to the selected white field.) Big Winner is debating decreasing the price of its rooms to $175 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 Big Winner is operating on the V portion of its demand curve. (Hint: Remember to reset any values you changed in the graph to their initial values by clicking on the circular arrow that appears next to the selected white field.)