The following graph input tool shows the daily demand for hotel rooms at the Triple Sevens Hotel and Casino in Las Vegas, Nevada. To help the hotel management better understand the market, an economist identified three primary factors that affect the demand for rooms cach night. These demand factors, along with the values corresponding to the initial demand curve, are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income s50,000 per year Roundtrip airfare from Los Angeles (LAX) to Las Vegas (LAS) Room rate at the Exhilaration Hotel and Casino, which is near the Triple Sevens $250 per roundtrip $250 per night Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph, Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Triple Sevens's Hotel Rooms Price (Dolars per room) s00 Quantity Demanded CHotel rooms per 200 Demand Factors 200 150 Derand Average Income 50 thourands of dolars) Airfare from LAX to LAS 250 (Dolers per Foundtrio) t0 0 200 250 30 350 0 40 sa0 QUANTITY (Hotel rooms) Room Rate at Exhilaration 250 (Dotars per night) PRICE (Dolars per room) For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Tripie Sevens is charging $300 per room per night. If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Triple Sevens from rooms per night to rooms per night. Therefore, the income elasticity of demand is meaning that hotel rooms at the Triple Sevens are If the price of an airine ticket trom LAX to LAS were to increase by 20%, from $250 to $300 roundtrip, while all cther demand factors remain at their initial values, the quantity of rooms demanded at the Triple Sevens - from rooms per night to raoms per night. Because the cross-price elasticity of demand is , hotel rooms at the Triple Sevens and airline trips between LAX and LAS are Triple Sevens is debating decreasing the price of its rooms to s275 per night. Under the initial demand conditions, you can see that this would cause its total revenue to v. Decreasing the price will always have this effect on revenue when Triple Sevens is operating on the partion of its demand curve.