Use the table below to answer the following question.
Table 4.1.5
-Refer to Table 4.1.5. 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
Correct Answer:
Verified
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