Answer:
($) 60 is the profit per item when the selling price is reduced by 20%
Step-by-step explanation: 20% of 700 is 140.
The original profit is 700 - 500 = 200. The selling price is 140 less, Subtract 140 from 200. That leaves a profit of 60. (Not necessarily dollars, as the currency was not given in the question.)
It isn’t really clear to me it’s confusing
8+0.75x=25
0.75x=25(-8)
0.75x=17
17/0.75= 22.666
He can ride a total of 22 rides
5.99(1.75)= 10.4825
10.4825 to the nearest hundredth is 10.48
$10.48
Answer: Choice B
If you lower your rates by 6% you will increase the number of occupancies by 12%
========================================================
Explanation:
Price Elasticity of Demand is found by dividing the percent change of demand over the percent change in price

If the price drops 6% leads to a 12% increase in demand, then we get this elasticity

The absolute value of that result is 2. We work backwards going from 2 to see the relationship between the 12% and 6%.
-------------
Side notes:
- Choice A is incorrect as a price elasticity of demand larger than 2 means we have elastic (rather than inelastic) demand.
- Choice C is incorrect because while raising rates does bring in more money in certain situations, there's a limit to how much the price goes up before people stop showing up. The prices can't go up forever. Also, the fact we have an elastic product means people are either forgoing this hotel or finding a substitute.
- Choice D is incorrect. Products with high demand elasticity usually have substitutes. Any slight change in the price leads people to seek cheaper options. Unless we're dealing with a small town there are usually multiple hotels to choose from.