Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

If the price of an airline ticket from SFO to LAS were to increase by 10%, from $100 to $110 roundtrip, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Because the cross-price elasticity of demand is

Sagot :

Answer:

Quantity demanded declined to 250 rooms per night from 300 rooms per night.

Cross price elasticity of demand is negative.

Explanation:

Cross price Elasticity of demand = [change in quantity demand/ current demand] / [ % change in price]

Cross price elasticity of demand = {[300 - 250] / 300 } / 10

Cross price elasticity of demand is = -1.6

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.