What do you understand by the own-price elasticity of demand for a good

What do you understand by the own-price press stud of take away for a favourable?1. (a) What do you understand by the own-price elasticity of demand for a good? (b) Will a elongate (straight line) demand curve have a constant own-price elasticity of demand? Explain your answer.(c) Following the terrorists attacks in the USA on 11 September, thither was a marked fall in business travel. In respomse, more hotels cut their prices to business travellers for example the Hyatt Hotel group offered discounts of up to 50 per centime off regular room rates. Under what circumstances would this lead to increase revenue for these hotels?Before we define the meaning of the own-price elasticity for a good wemust understand elasticity and its concept in general. Elasticity isfundamentally a comparison between the sizes of change in the amount of moneydemanded, in the case of the own-price elasticity, of a certain goodand in the variable that caus ed this change. accord to Mankiwelasticityis a measure of the responsiveness of sum demanded or quantitysupplied to wiz of its determinants. The law of demand implies that anincrease in a price of a good will subsequently lead to a fall in thequantity demanded for that good. The formulae which calculates thisamount is the division of the percentage of change in quantitydemanded by the percentage of change in price. The sign of priceelasticity of demand, and elasticity as well, is invariably going to benegative collect to the fact that quantity and price demanded are usuallyin turnabout directions. Elasticity is going to be negative as wellsince incomplete the percentage change in price nor the the percentagechange in quantity ar... ...sequent repurcusion this had in economyas a whole brought a downfall in business travelling. The hotels inorder to manage this crisis effectively reduced their prices andoffered discounts in order to increase the quantity of customersvisiting them. If we learn the law of demand in this case, hotelreservations should increase in this period as well as the totalrevenue of the business but this would overhaul when the priceelasticity of demand is elastic. This happens when the percentagechange in quantity is larger than the percentage change in price.Concluding, we would easily say that it is turn in that the hotelswould increase their total revenue with discounts and better pricesbut this is not always the case. There are other factors influencingcustomer behaviour after these terrorist attacks that would not beeasily predicted or affluenced.