In the short run, the quantity of available hotel rooms is not particularly responsive to changes in price because hotels take time to build and to destroy. This implies that the short-run supply of hotel rooms isMultiple Choiceelastic.inelastic.in equilibrium.greater than demand.

Consider the market for rental accommodation. In the short run, the supply of this product tends to be A. infinitely price elastic. B. unit price elastic. C. very or completely price inelastic. D. irrelevant to the housing market price. E. very price elastic.

a. Consider the statement: “Even if a firm is losing money, it may be better to stay in business in the short run.” This statement ismultiple choice 1true, if the loss is less than the fixed cost.true, if the loss is less than the variable cost.false, because it could be better to stay in business in the long run.false, because a firm should only stay in business if it is making money.b. The firm should produce in the short run as long as the pricemultiple choice 2exceeds the average fixed cost.exceeds the average variable cost.is less than the average variable cost.is less than the average fixed cost.

What is the short-run equilibrium condition under a perfect competitive market?

A perfectly inelastic demand implies that buyers:Group of answer choicesenjoy paying more for the goodincrease their quantity demanded of the good when the price riseswill continue to buy the same quantity of the good no matter how big the change in pricepurchase none of the good when the price rises

9 short statements on the FACTORS THAT INFLUENCE PERFORMANCE OF HOTELS