Use the case below to answer the following question(s).
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula:
(Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Which of the following is the expression that can be used to determine the projected number of platinum suites sold?
A)875 - 6.176471P
B)255.7554 - 1.079137P
C)600 - 4.081633P
D)300 - 1.079137P

Question

Use the case below to answer the following question(s).
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history:  Each market segment has its own price/demand elasticity.Estimates are:  This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula:
(Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Which of the following is the expression that can be used to determine the projected number of platinum suites sold?
A)875 - 6.176471P 
B)255.7554 - 1.079137P 
C)600 - 4.081633P 
D)300 - 1.079137P

Quizplus · Accepted Answer

The Answer of Use the case below to answer the following question(s).
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history:  Each market segment has its own price/demand elasticity.Estimates are:  This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula:
(Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Which of the following is the expression that can be used to determine the projected number of platinum suites sold?
A)875 - 6.176471P 
B)255.7554 - 1.079137P 
C)600 - 4.081633P 
D)300 - 1.079137P

Use the Case Below to Answer the Following Question(s)