Consider what your firm produces. What are some things that would change the demand for your product? Discuss at least two factors.
What are some things that would affect changes in supply? Discuss at least two factors.
How can quantity demanded be changed?
What kind of demand (elastic or inelastic) does the product that your firm produces have? Explain.
I assume that hotels are the "firm" that you are looking at in this problem?
Demand for hotels are affected by many things:
- general economic climate (are people able to travel? Is there enough disposable income for people to stay at your hotel?)
- other tourism infrastructure (if people are unable to fly to your city, it is less likely there will be a need for a high-end hotel)
- perceptions of the location/quality of the hotel (Intercontinental has a firm reputation and is ...
This answer examines the determinants of supply and demand for hotels, as well as explaining the elasticity of hotels. The kind of demand the product that the firm produces are determined.