Question: 4. (5 points) The demand function facing a resort hotel is PH = 300 - Q in the high season and PL = 100 -Q

4. (5 points) The demand function facing a resort hotel is PH = 300 - Q in the high season and PL = 100 -Q in the low season. The resort's marginal cost is $50 per night. The resort has 100 rooms. Using a peak load pricing strategy what price will the resort charge for room during the high season and during the low season. Please show your calculations. P MC P4 PH =300 - QH P3 P2 MRH= 300 -2QH MC1 = $50 `PL = 100 - QL MRL= 100 - 2QL Quantity Q1 Q2 Q3=100 (a) During the period of low demand please determine the price the resort would charge per room and how many customers will it get. Please show our calculations. (b) During the period of high demand please determine the price the resort would charge per room and how many customers will it get. Please show our calculations

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