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Author Question: If I raise my price by 10 and wind up losing 15 of my customers, is the price elasticity of demand ... (Read 42 times)

fox

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on: Sep 11, 2019

Question 1

Think about a destination that you have visited that you especially liked. Describe how it measures up on the four criteria that make a destination great and different.
 
  What will be an ideal response?

Question 2

If I raise my price by 10 and wind up losing 15 of my customers, is the price elasticity of demand for my hotel elastic or inelastic?
 
  What will be an ideal response?


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leahchrapun

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Reply #1 on: Sep 11, 2019

Answer 1

This question has the intention of encouraging students to recognize that destinations differ across a spectrum that may seem quite wide, but, in fact, can be described and characterized

in systematic ways on the basis of a limited number of dimensions. Understanding this fact should lead to the conclusion that certain characteristics of specific destinations will also attract certain types of travelers that can be described along demographic and psychographic dimensions.

Answer 2

If I increase rates by 10 and lose 15 of my customers, my customers are said to be price elastic or very sensitive to changes in rates.


fox

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Reply 2 on: Sep 11, 2019
YES! Correct, THANKS for helping me on my review

kusterl

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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