Question: Given demand function for a hotel property located in San Diego as follows, answer the following four questions . Assume the hotel has 25 rooms

Given demand function for a hotel property located in San Diego as follows, answer the following four questions. Assume the hotel has 25 rooms in total, and also assume those who are willing to pay a higher price typically book in the last minute and those who are willing to pay a lower price will book in advance.

Demand = 50 - 0.2 Price

If the hotel charges a room rate of $200 per night, how many rooms will be booked?

If the hotel charges a room rate of $200 per night, what is the total revenue (in dollars) the hotel can make? Ignore all operating costs.

If the hotel charges a room rate of $100 per night, what is the total revenue (in dollars) the hotel can make? Ignore all operating costs.

If the hotel charges two different room rates, $100 per night for those who book in advance and $200 for those who book last minute, how many rooms should the hotel sell in advance in order to earn the highest revenue?

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