Question

Question 1 quor packages Othe r package. The resort has been t h e major storm destroyed of the othe r the decided to raise rates in for both 2012. the end of the s h o room rates for both groups from 5345ch to 5425 As the price of rooms increases from 5345 to 5425.what is the price city of demand for t h e Use the midpoint method in your calculations and round all awwers to the hundredth place Show your work Put your answer into the next question Quantity Demanded non-subscription Year Quantity Demanded subscription Price 165 rooms 2016 $225 400 rooms $295 2017 90 rooms 320 rooms 2018 $345 305 rooms 80 rooms $425 2019 295 rooms 55 rooms

Answer 1

Price elasticity of demand for SUBSCRIPTION HOLDERS.

(mid-point method) =(Q2-Q1) /[(Q2+Q1) /2] ÷ (P2-P1) /[(P2+P1) /2]

=(295-305)/[(295+305)/2]÷(425-345)/[(425+385)/2]

=(-10/300)÷(80/405)

=0.03/0.20

=0.15