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Question: i input all the choices to give an idea of...

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9. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms each night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool Demand Factor Average American household income Roundtrip airfare from Los Angeles (LAX) to Las Vegas (LAS) Room rate at the Grandiose Hotel and Casino, which is near the Peacock Initial Value $50,000 per year $200 per roundtrip $250 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 Peacocks Hotel Rooms 500 450 400 350 300 D 250 O 200 150 100 50 Price (Dollars per room) 300 Quantit Demanded (Hotel rooms per night) 200 Demand Factors Average Income (Thousands of dollars) emand 50 Airfare from LAX to 200 (Dollars per roundtrip) 0 50 100 150 200 250 300 350 400 450 500 Room Rate at Grandiose (Dollars per night) QUANTITY (Hotel rooms) 250

For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is charging $300 per room per night If average household income increases by 20% from $50,000 to $60,000 per year, the quantity of rooms demanded at the Peacock falls ▼ from rooms per night. Therefore, the income elasticity of demand is negative, meaning that hotel rooms at the rooms per night tor Peacock are a normal good If the price of an airline ticket from LAX to LAS were to increase by 10%, from $200 to $220 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Peacock fallsfrom price elasticity of demand is positive ▼ , hotel rooms at the Peacock and airline trips between LAX and LAS are complements ▼ . rooms per night to rooms per night. Because the cross- Peacock is debating decreasing the price of its rooms to $275 per night. Under the initial demand conditions, you can see that this would cause its tota revenue to decrease ▼ Decreasing the price will always have this effect on revenue when Peacock is operating on the inelastic ▼ portion of its demand curve.

I input all the choices to give an idea of what they're asking and have no idea if they are correct.

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