A Large Hotel Was Full with an Incoming Convention

question 10

Multiple Choice

A large hotel was full with an incoming convention. Housekeeping personnel were overworked in preparing the rooms for the guests and so did not clean as thoroughly as usual. A guest hurt her hand when she encountered a razor blade that had been left in a dresser drawer, and she sued the hotel. No similar accident had ever occurred at the hotel throughout its twelve years of business. Will the hotel be liable in this case?

• A) Yes, the hotel was negligent and will be liable for the injuries.
• B) No, the added demand on the hotel's services excuses it from liability in this case.
• C) No, since no prior similar incidents had occurred, the hotel could not have foreseen the injury in this case and therefore is not liable.
• D) No, since hotels are not liable for their guests' injuries unless the hotel staff intentionally causes the injury.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Inelastic

A description of a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price, indicating the sensitivity of demand or supply to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, holding all other factors constant.