Consider Luxury Weekend Hotel Packages in Las Vegas

Multiple Choice

Consider luxury weekend hotel packages in Las Vegas.When the price is $250,the quantity demanded is 2,000 packages per week.When the price is $280,the quantity demanded is 1,700 packages per week.Using the midpoint method,the price elasticity of demand is about

A) 1.43,and an increase in the price will cause hotels' total revenue to decrease.
B) 1.43,and an increase in the price will cause hotels' total revenue to increase.
C) 0.70,and an increase in the price will cause hotels' total revenue to decrease.
D) 0.70,and an increase in the price will cause hotels' total revenue to increase.