Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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