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Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?

A) A decrease in airfares to Hawaii
B) A downward movement along the demand curve for stays in Hawaiian hotel rooms.
C) An upward movement along the demand curve for stays in Hawaiian hotel rooms.
D) An increase in airfares to Hawaii

asked
User Albanx
by
7.5k points

1 Answer

1 vote

Final answer:

Option A, a decrease in airfares to Hawaii, would lead to an increase in demand for hotel rooms in Hawaii, as it lowers the overall cost of visiting the state.

Step-by-step explanation:

When considering the options given, A) A decrease in airfares to Hawaii would result in an increase in demand for hotel rooms. This is because lower travel costs make Hawaii more accessible to a larger group of potential visitors, who are then more likely to book hotel rooms. The correct answer is not B) A downward movement along the demand curve for stays in Hawaiian hotel rooms, as this represents a decrease in price leading to a higher quantity demanded, not an increase in demand itself. C) An upward movement along the demand curve for stays in Hawaiian hotel rooms indicates a higher price leading to a lower quantity demanded, which does not signify an increase in actual demand. Lastly, D) An increase in airfares to Hawaii would typically lead to a decrease in demand for hotel rooms, as the higher cost of travel would deter some people from visiting.

answered
User Ramit Girdhar
by
7.5k points
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