Question

1. A hotel in Mission Bay charges $275 per room in during the summer tourist season and $89 during the winter months.

The number of rooms and operating costs for the hotel don’t change, whether it is summer or winter. This increase in

price indicates

a. a rightward shift in the demand in the summer.

b. a rightward shift in demand in the winter.

c. a leftward shift in the supply curve in the summer.

d. a leftward shift in demand in the winter.

Answer 1

The hotel charges more in summer and less in winter because the demand is high in summer and low in winter

a. a rightward shift in the demand in the summer