Solution Library

Calculate Impact On Income Using Demand Function


As the manager of a local hotel chain, you have hired an econometrician to estimate the demand for one of your hotels (H). The estimation has resulted in the following demand function:

Qh = 2,000 – Ph – 1.5Pc -2.25Pse + 0.6Poh + .02M

Where Ph is the price of room at your hotel, Pc is the price of concerts in your area, Pse is the price of sporting events in your area, P0h is the average room price at other hotels in your area and M is the average income in the United States.

A $10 reduction in the price charged by other hotels? A $7 increase in the price of tickets to local sporting events?



This question belongs to micro economics and discusses about increase in income using demand function


Total Word Count 67





Download Full Solution


  • HWA

    this is a very good website

  • HWA

    I have 50 questions for the same test your page is showing only 28

  • HWA

    hi can you please help or guide me to answer my assignments. thanks

  • HWA

    hi can anyone help or guide me to my assignments. thanks

  • HWA

  • HWA

    This solution is perfect ...thanks

  • HWA

    Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

  • HWA

    Perfect bank of solution. 

  • HWA

    great !

  • HWA
    Paul Brandon-Fritzius

    thanks for the quick response. the solution looks good. :)

  • HWA
    tina Johnson

    thnx for the answer. it was perfect. just the way i wanted it. 

  • HWA

    works fine.