Revenue Management Systems (RMS)

question 54

Multiple Choice

Revenue management systems (RMS) :

• A) consist of standard and static methods to forecast demand.
• B) rely solely on overbooking.
• C) are cost minimization models.
• D) maximize the revenue generated by a perishable asset.

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Definitions:

Inelastic

Describes a market situation where the demand for a product or service is relatively unchanged by price variations.

Elastic

Describes a situation where the quantity demanded of a product or service significantly changes in response to a change in its price.

Demand Curve

A graph showing how the demand for a commodity or service varies with changes in its price.

Quantity Demanded

The total amount of a product that consumers are willing and able to purchase at a given price over a specified period.