Use the Case Below to Answer the Following Question(s)

question 96

Multiple Choice

Use the case below to answer the following question(s) .
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $) ,the projected number of suites of a given type sold (we will allow continuous values for this problem) can be found using the formula:
(Historical average number of suites sold) + (Elasticity) (New price - Current price) (Historical average number of suites sold) /(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Which of the following is the expression that can be used to determine the projected number of gold suites sold?

• A)875 - 6.176471G
• B)200 - 4.081633G
• C)600 - 4.081633G
• D)255.7554 - 1.079137G

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Definitions:

Enumerated Lists

Ordered lists where items are numbered or listed with bullet points to organize information clearly.

Bulleted Lists

A series of items or points presented with bullet symbols to organize information or highlight key aspects.

Inductively Organized

Structured in a manner where specific observations or data points lead towards the formulation of a general conclusion or theory.

Paradox

A statement or concept that despite sound reasoning from acceptable premises, leads to a conclusion that seems logically unacceptable or self-contradictory.