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

---

Definitions:

Liabilities

Debts or financial responsibilities a business has to people or entities outside of it.

Increase Net Income

Actions or strategies aimed at raising the amount of profits a company keeps after deducting all expenses, taxes, and costs.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities have been subtracted, also referred to as shareholders' equity.

Unearned Revenue Account

A liability account that records payments received for goods or services not yet delivered or performed.