demand schedule for hotel rooms is in the table.
What happens to total revenue when the price falls from $400 to $250 a room per night and from $250 to $200 a room per night?
b.
When the price is $250, the total revenue is equal to $250 × 80 million rooms, or $20 billion. When the price is $200, the total revenue is equal to $200 × 100 million rooms, or $20 billion. So the total revenue does not change when the price falls from $400 to $250 a night.
Is the demand for hotel rooms elastic, inelastic or unit elastic?
The total revenue is the same at all prices, $20 billion. Because a change in price does not change the total revenue at any price, the demand is unit elastic at all prices.