A 330-Room Hotel Is Two-Thirds Filled When the Nightly Room $\$ 105.00$

question 67

Multiple Choice

A 330-room hotel is two-thirds filled when the nightly room rate is $100.Experience has shown that each $15 increase in cost results in 30 fewer occupied rooms.Find the nightly rate that will maximize
Income.

• A) \(\$ 105.00\)
• B) \(\$ 315.00\)
• C) \(\quad \$ 132.50\)
• D) \(\$ 210.00\)
• E) \(\$ 55.00\)

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Definitions:

Demand for Good

Demand for good refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity demanded equals the quantity supplied, leading to market stability.

Demand Decreases

A situation where the desire or need for a product or service declines, often leading to lower prices and adjustments in supply.

Supply Increases

Occurs when the quantity of a good or service that a market can offer rises.