Use the table below to answer the following question.
Table 4.1.4

-Refer to Table 4.1.4.The demand for hotel rooms is ________ because ________.
A)inelastic;if the price is set low enough,total revenue will decrease
B)elastic;if the price is set high enough,total revenue will decrease
C)unit elastic;a price cut leaves total revenue unchanged.Total revenue never reaches a maximum
D)decreasing as the price falls;the demand curve for hotel rooms is a straight-line demand curve
E)inelastic;if the price is set low enough,total revenue will increase

Question

Use the table below to answer the following question.
Table 4.1.4
 
-Refer to Table 4.1.4.The demand for hotel rooms is ________ because ________.
A)inelastic;if the price is set low enough,total revenue will decrease 
B)elastic;if the price is set high enough,total revenue will decrease 
C)unit elastic;a price cut leaves total revenue unchanged.Total revenue never reaches a maximum 
D)decreasing as the price falls;the demand curve for hotel rooms is a straight-line demand curve 
E)inelastic;if the price is set low enough,total revenue will increase

Quizplus · Accepted Answer

Unit elasticity means that a change in price does not affect total revenue, indicating that the percentage change in quantity demanded equals the percentage change in price.

Use the Table Below to Answer the Following Question