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:

Future Value

The amount to which some current amount of money will grow if interest earned on the amount is left to compound over time.

Imperfectly Competitive

A market structure where individual firms have some control over the price of their products due to factors like brand differentiation and barriers to entry.

Future Value

The value of an investment or sum of money at a specified future date, calculated by applying a rate of interest or return.

Stock Portfolio

A collection of stocks owned by an individual or an institution, managed as a single entity with specific investment goals and strategies.