Article in the wall street? journal-unlike? airlines

Assignment Help Business Economics

Reference no: EM131244542

According to an article in the Wall Street? Journal, unlike? airlines, even elite hotels? don't have sophisticated systems that can react quickly to changes in demand. Even if they? could, many hoteliers say people? don't respond that much to lower rates.? 'We've tested? this, cutting our rates by? $50 [per? night], and we? didn't see an appreciable response in? occupancy,' says Jim? Schultenover, a vice president for Ritzminus−Carlton.

?Source: Jesse? Drucker, "In Times of Beltminus−?Tightening, We Seek Reasonable? Rates", Wall Street Journal?, April? 6, 2001.

Based on the information? above, the demand for hotel rooms

A. is price elastic.

B. is income elastic.

C. is price inelastic.

D. is income elastic.

Reference no: EM131244542

Questions Cloud

Hourly worker who currently earns : Consider Mary, an hourly worker who currently earns $30,000 per year. If Mary's wage rate is increased by 50%:

The absolute slope of a budget line is equal : With the quantity of good x measured on the horizontal axis and the quantity of good y measured on the vertical axis, the absolute slope of a budget line is equal to: If the composite good convention is adopted so that expenditure on all other goods ..

When resources are allocated to their highest valued : When resources are allocated to their highest valued use? __________ is achieved and when goods and services are produced at the lowest possible cost? _______ is achieved. If two goods are? substitutes, then their

Consider production possibilities frontier : Consider a production possibilities frontier? (PPF) that is concave? (bowed outward from the? origin). Such a PPF displays increasing opportunity? costs, meaning that the cost of producing additional units of both goods rises. What is the reason for ..

Article in the wall street? journal-unlike? airlines : According to an article in the Wall Street? Journal, unlike? airlines, even elite hotels? don't have sophisticated systems that can react quickly to changes in demand. Even if they? could, many hoteliers say people? don't respond that much to lower r..

What is the equilibrium price and quantity in free market : You are a very powerful lobbyist and have convinced your client that you can make them the only legal extractor of coal in the United States and simultaneously make coal imports illegal. What is the equilibrium price and quantity in a free market? On..

Increase in consumer income-ceteris paribus : Assume that a 10% increase in consumer income, ceteris paribus, caused a 4% decrease in the purchase of bus tickets. Based on this information:

Farmers can plant either corn or soybeans in their fields : Farmers can plant either corn or soybeans in their fields. Suppose that a new technology for converting corn into liquid fuel increases the demand for corn. Which of the following is most likely to? occur?

The corresponding price-consumption curve will be : If the demand for product Z is perfectly inelastic, then the corresponding price-consumption curve will be

User Account

All Pages