1. Which of the following description explains the meaning and the calculation process of the Price...
1. Which of the following description explains the meaning and the calculation process of the Price Elasticity on Demand most appropriately?
It determines the degree of changes of demand (of a product) when the price (of the product) changes. The calculation process is: Change of Demand (in #) divided by the Change of Price ($).
It determines the degree of the Change of Price (of a product) when the Demand (of the product) changes. The calculation process is: Change of Price (in $) divided by the Change of Demand (in #).
It determines the degree of changes of demand (of a product) when the price (of the product) changes. The calculation process is: Change of Demand (in %) divided by the Change of Price (in %).
It determines the degree of changes of price (of a product) when the demand (of the product) changes. The calculation process is: Change of Price (in %) divided by the Change of Demand (in %).
2. Your business recently has increased the room price by $5 from $75 to $80. During the past (in similar seasons with similar events in town), the average occupancy rates were 75%. With the new price, however, the occupancy rate has fallen to 72%. What is your conclusion about the impact of the room price changes on the demand?
The demand is elastic. Price increase must be very carefully determined.
The demand is not elastic. Price increase (to a certain degree) can be easily determined.
Price changes of the hotel room and the demand are indifferent to each other,
None of the above
Homework Answers
1.It determines the degree of the Change of Price (of a product) when the Demand (of the product) changes. The calculation process is: Change of Price (in $) divided by the Change of Demand (in #).
Explanation:
elasticity of demand is calculated by dividing the percent change in the quantity demanded of a good or service by its percent change in its price level. A change in the price level of a good or service determines the elasticity of the good.
2.The demand is elastic. Price increase must be very carefully determined.
Explanation:
business recently has increased the room price by $5 from $75 to $80. During the past (in similar seasons with similar events in town), the average occupancy rates were 75%. With the new price, however, the occupancy rate has fallen to 72%.
the impact of the room price changes on the demand therefore
The demand is elastic. Price increase must be very carefully determined.
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the first image is an explanation of a very similar problem i didnt do it correctly...
the first image is an explanation of a very similar problem i
didnt do it correctly so i got another attempt please
help..
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its
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the first image is an explanation of a very similar problem i
didnt do it correctly so i got another attempt please
help..
Points: 1/1 Explanation: When the Big Winner charges $200, it can fill 300 rooms at that price Total revenue is equal to price times quantity. Therefore, you can compute Big Winner's revenue at this price in the following way: Close Explanation Total Revenue-Price x Quantity $200 per room per night x 300 rooms $60,000 per night By...
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its
fundamentals to economics
ensures that resources are allocated to their highest-valued uses. a. Monopoly b. Government C. The consumer d. Competition e. Arbitrage Styles 3 As the wago rato increases, the quantity supplied of labor in a market will a. increase. b. decrease c. first increase and then decrease. d. first decrease and then increase. e. remain constant. 4 As the wage rate increases, the quantity demanded of labor in a market will a. increase. b. decrease. c. first...
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