Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?
A) an increase in airfares to Hawaii
B) a decrease in airfares to Hawaii
C) an upward movement along the demand curve for stays in Hawaiian hotel rooms
D) a downward movement along the demand curve for stays in Hawaiian hotel rooms

Question

Quizplus · Accepted Answer

A decrease in airfares to Hawaii would make traveling to Hawaii cheaper and more affordable, thereby making it more attractive and accessible to tourists. This would likely result in an increase in the demand for hotel rooms in Hawaii as more people would be willing and able to travel there. Conversely, an increase in airfare prices (option A) would have the opposite effect, discouraging people from traveling to Hawaii and reducing the demand for hotel rooms. Choices C and D refer to movements along the demand curve, which would not directly affect the overall level of demand.

Which One of the Following Would Cause an Increase in the Demand