What do you understand by the own-price elasticity of demand for a good

What do you extrapolate by the own-price snapshot of have for a good?1. (a) What do you understand by the own-price elasticity of lease for a good? (b) Will a linear (straight line) hold wind have a constant own-price elasticity of command? Explain your answer.(c) pastime the terrorists attacks in the USA on 11 September, there was a marked fall in moving in travel. In respomse, many hotels cut their prices to business travellers for example the Hyatt Hotel group offered discounts of up to 50 per cent off habitue room rates. Under what circumstances would this lead to increased revenue for these hotels? forwards we define the meaning of the own-price elasticity for a good wemust understand elasticity and its concept in general. Elasticity isbasically a comparing between the sizes of counterchange in the amountdemanded, in the case of the own-price elasticity, of a certain goodand in the variable that caused this change. Acc ording to Mankiwelasticityis a pulse of the responsiveness of quantity demanded or quantitysupplied to one of its determinants. The law of demand implies that anincrease in a price of a good testament subsequently lead to a fall in thequantity demanded for that good. The formulae which calculates this heart and soul is the division of the parting of change in quantitydemanded by the persona of change in price. The sign of priceelasticity of demand, and elasticity as well, is always spill to benegative due to the fact that quantity and price demanded be usuallyin opposite directions. Elasticity is going to be negative as wellsince neither the percentage change in price nor the the percentagechange in quantity ar... ...sequent repurcusion this had in economyas a whole brought a downfall in business travelling. The hotels inorder to manage this crisis effectively reduced their prices andoffered discounts in order to increase the quantity of customersvisiting them. If we consider the law of demand in this case, hotelreservations should increase in this period as well as the aggregaterevenue of the business but this would happen when the priceelasticity of demand is elastic. This happens when the percentagechange in quantity is larger than the percentage change in price.Concluding, we would good say that it is assume that the hotelswould increase their total revenue with discounts and better pricesbut this is not always the case. There are other factors influencingcustomer behaviour after these terrorist attacks that would not beeasily predicted or affluenced.