The demand schedule for hotel rooms is
Price (dollars per night) Quantity demanded (millions of rooms per night)
200 …………………………………………….. 100
250 …………………………………………….. 80
400 ……………………………………………..50
500 ……………………………………………..40
800 ……………………………………………..25
a. What happens to total revenue when the price falls from $400 to $250 a night and from $250 to $200 a night?
b. Is the demand for hotel rooms elastic, inelastic, or unit elastic?