A Hotel Has a Capacity of 100 Rooms

question 177

Essay

A hotel has a capacity of 100 rooms.Which of the following statements best describes the elasticity of supply for rooms at this hotel?
A.The supply is elastic at quantities above 100 rooms but inelastic at quantities below 100 rooms.
B.The elasticity of supply is equal to 1 in the short run but infinitely elastic in the long run.
C.The elasticity of supply is zero in the short run because the short-run supply curve is vertical.
D.The supply is infinitely elastic in the short run but perfectly inelastic in the long run.

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Definitions:

Promotional Efforts

Marketing activities aimed at increasing awareness, interest, and sales of a product or service through various strategies and channels.

Objective and Task Budgeting

A method of budget setting where a company first defines its objectives and then estimates the cost of all tasks needed to achieve these objectives.

Promotion Objectives

Refers to the goals a company aims to achieve through its promotional activities, such as increasing brand awareness or sales.

Promotion Cost

Expenses incurred to market and advertise a product, service, or brand to increase sales or awareness.