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Mon 4 Feb, 2013 10:07 am
What is more price elastic in the short run? supply of hotel accommodations or demand for hotel accommodation? Say the next world cup world cup there will be millions of people flying into Brazil, what would be more price elastic in the short run for hotel accommodations, supply or demand? i was thinking in the short run demand is inelastic and so is supply? im so confused. because can they even be both?
@millermangeo,
Not being a professional economist, I'm not sure I understand what is meant by "elastic" in this context.
@Lustig Andrei,
At night, they may discover a no show reservation, and the night auditor may have more flexibility in rates than otherwise. In my own town, you do not want to be the only night auditor to have a vacancy during say, the Connie Mack World Series, or the National High School Finals Rodeo.
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