Demand Factor Initial Value Average American Household Income Roundtrip Airfare From New York Jfk To Las Vegas Las 1 (43.37 KiB) Viewed 12 times
Demand Factor Initial Value Average American Household Income Roundtrip Airfare From New York Jfk To Las Vegas Las 2 (30.09 KiB) Viewed 12 times
Demand Factor Initial Value Average American household income Roundtrip airfare from New York (JFK) to Las Vegas (LAS) $40,000 per year $200 per roundtrip Room rate at the Grandiose Hotel and Casino, which is near the Peacock $200 per night 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. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Peacock's Hotel Rooms 500 450 Price 200 (Dollars per room) Quantity 300 Demanded (Hotel rooms per night) Demand Factors. Demand Average Income (Thousands of dollars) Airfare from JFK to LAS (Dollars per roundtrip) 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms). Room Rate at Cesndines PRICE (Dollars per room) 400 350 300 250 200 150 100 50 0 40 200 200
For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is charging $200 per room per night. If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Peacock from rooms per night to rooms per night. Therefore, the income elasticity of demand is meaning that hotel rooms at the Peacock are rooms per night. Because the cross-price elasticity of If the price of a room at the Grandiose were to decrease by 20%, from $200 to $160, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Peacock from demand is rooms per night to hotel rooms at the Peacock and hotel rooms at the Grandiose are Peacock 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 Decreasing the price will always have this effect on revenue when Peacock is operating on total revenue to the portion of its demand curve. Grade It Now Save & Continue Continue without saving
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