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

question 52

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.
-The projected number of gold suites sold is ________.

• A)382
• B)233
• C)140
• D)755

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Definitions:

Manipulate Muscles

The practice of physically adjusting or massaging muscles to relieve tension, pain, or to improve mobility and function.

Soft Tissue

Parts of the body that include muscles, tendons, ligaments, fat, and other connective tissues not involving bone.

Massage

The manipulation of the body's soft tissues to relieve muscle tension, reduce stress, and promote overall health and well-being.

Approaches

Methods or strategies used to address issues or achieve goals.