Question

Test: Exam This Question: 1 pt 29 of 79 (26 complete) D thhotels Which graph above best represents what happens in the market for hotel rooms a ski resort during the winter? O A B, because more hotels would offer rooms, thereby shifting supply to the left OB. A because more people would need accomodations, thereby shifting demand to the right C. B. because lower hotels would offer rooms, thereby shifting supply to the left OD. A because fewer people would need accomodations, thereby shiring demand to the right From the graph that you picked, hotel te stayed at their summer level the result would be a surplus of hotel rooms Click to select your answer

Answer 1

Option 'C' is correct.

During winters , less hotel rooms at ski resort will be offered as a result of which supply of hotel rooms decreases at the same price, hence the supply curve shifts to left. Therefore, Option 'C' is correct.

But, if the price remains the same as that of summer(P0) then the new quantity demanded at P0 would be less than Q0, and hence there will be a surplus of hotel rooms at the summer rate.