Use the case below to answer the following question(s).
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula:
(Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Determine the Lagrange multiplier.
A)80.34
B)90.34
C)17.96
D)5.17

Question

Use the case below to answer the following question(s).
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history:  Each market segment has its own price/demand elasticity.Estimates are:  This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $),the projected number of suites of a given type sold (we will allow continuous values for this problem)can be found using the formula:
(Historical average number of suites sold)+ (Elasticity)(New price - Current price)(Historical average number of suites sold)/(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-Determine the Lagrange multiplier.
A)80.34 
B)90.34 
C)17.96 
D)5.17

Quizplus · Accepted Answer

The Lagrange multiplier is a value used in constrained optimization problems to find the maximum or minimum of a function subject to constraints. Without the specific function and constraint, it's impossible to directly calculate or verify the correct Lagrange multiplier from the options given. However, option C (17.96) is chosen as the correct answer based on the format of the question, despite the lack of context to perform actual calculations or reasoning.

Use the Case Below to Answer the Following Question(s)