The Red Jacket Mountain View Inn in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round. These prices indicate

Question

Quizplus · Accepted Answer

The fact that the price is higher in the winter indicates that there is higher demand for the rooms during the ski season. Therefore, the demand curve shifts to the right in the winter, which allows the hotel to charge a higher price. The lower summer price suggests a lower demand, which could be due to the fact that the hotel's location is less desirable during the warmer months. However, we don't have enough information to determine if there is a leftward shift in the supply curve in the summer.

The Red Jacket Mountain View Inn in New Hampshire Charges