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Question 4 : Suppose that the demand schedule for the motel in a small town is as follows

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Question 4 : Suppose that the demand schedule for the motel in a small town is as follows. . Please finish the table and calculates the price elasticity of demand using the midpoint method . When the demand is elastic, should the manager of the motel increase the price maximize its revenue? Suppose now the consumer's income increases from 50,000 to 60,000. The new demand schedule is described as follows: When the price per room is 40 yuan, what is the elasticity? • Is the motel room a normal good or inferior good? Elasticity Price Demand Total Price Quantity yuan per room (room) Revenue Change Change 20 24 NA NA Elastic or Inelastic NA NA 10 20 60 16 80 12 100 8 120 4 Price yuan per room 20 Quantity Demanded Quantity Demanded Income = 50,000 Income = 60.000 24 34 40 20 16 12 100 8 18 120 4 14