The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.40 and is 2.60 in the spring. If Luxury Resorts faces a constant marginal cost of $600 per home rental, what is the profit- maximizing peak- load price to charge in the summer?
A)$2,750
B)$975
C)$1,250
D)$2,100

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The Answer of The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.40 and is 2.60 in the spring. If Luxury Resorts faces a constant marginal cost of $600 per home rental, what is the profit- maximizing peak- load price to charge in the summer?
A)$2,750
B)$975
C)$1,250
D)$2,100

The Price Elasticity of Demand for a Rental Home in Luxury