Answer:
The elasticity is about 1.43, and an increase in the price will cause hotels' total revenue to decrease
Explanation:
The formula of the midpoint for the variation of the quantity is 
and for the price is 
. With the variation of the price and the quantity the elasticity formula is ΔQ/ΔP. Replacing the elasticity is -1.43
The price elasticity of the demand is bigger than 1, that means that the demand is elastic, every increase of the price will cause a bigger decrease of the quantity, the revenue will drop because the increase of the price do not compansete the decrease of the quantity.
The answer is true, hope that helps!!
When the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.
<h3>What is Federal Reserve?</h3>
It should be noted that the Federal Reserve controls the monetary aspect in an economy.
In this case, when the Federal Reserve wants to increase the money supply, it will purchase bonds from banks.
Also, when the Fed wants to decrease the money supply, the thing that should be done will be to sell bonds.
Learn more about Federal Reserve on:
brainly.com/question/25817380
