c. Will Erin's total revenue rise if she increases the price from $90 to $110? d. Calculate the price elasticity of demand between $110 and $130. 13. Suppose Erin, the owner-manager of a local hotel, proj- ects the following demand for her rooms: PRICE $90 110 130 QUANTITY PURCHASED (per Night) 100 882 90 70

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 22RQ: What is the formula for line cross-price elasticity of demand?
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c. Will Erin's total revenue rise if she increases the price
from $90 to $110?
d. Calculate the price elasticity of demand between $110 and
$130.
Transcribed Image Text:c. Will Erin's total revenue rise if she increases the price from $90 to $110? d. Calculate the price elasticity of demand between $110 and $130.
13. Suppose Erin, the owner-manager of a local hotel, proj-
ects the following demand for her rooms:
PRICE
$90
110
130
QUANTITY PURCHASED (per Night)
100
882
90
70
Transcribed Image Text:13. Suppose Erin, the owner-manager of a local hotel, proj- ects the following demand for her rooms: PRICE $90 110 130 QUANTITY PURCHASED (per Night) 100 882 90 70
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