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zavuch27 [327]
2 years ago
6

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 f

actors 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
Business
1 answer:
shutvik [7]2 years ago
7 0

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

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