Use the Table Below to Answer the Following Question

question 87

Multiple Choice

Use the table below to answer the following question.
Table 4.1.5

-Refer to Table 4.1.5. The demand for hotel rooms is ________ because ________.

• A)inelastic; if the price is set low enough, total revenue will decrease
• B)elastic; if the price is set high enough, total revenue will decrease
• C)unit elastic; a price cut leaves total revenue unchanged. Total revenue never reaches a maximum
• D)decreasing as the price falls; the demand curve for hotel rooms is a straight-line demand curve
• E)inelastic; if the price is set low enough, total revenue will increase

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Definitions:

Declines to Declare Dividends

The decision by a company's board of directors not to distribute earnings to shareholders in the form of dividends.

Fundamental Change

A significant alteration in the operations, structure, or financial standing of a company that can affect its stakeholders.

Minority Shareholder

A minority shareholder is someone who owns less than 50% of a company's shares and therefore does not have a controlling interest in the company.

Preemptive Rights

Rights that allow existing shareholders the opportunity to buy new shares of a company's stock before it is offered to the public, often to maintain their percentage of ownership.