The following graph input tool shows the daily demand for hotel rooms at the Peacock Hotel and Casino in Las Vegas Nevada. To help the hotel management better understand the market an economist identified three primary factors that affect the demand for rooms each night. These demand factors along with the values corresponding to the initial demand curve are shown in the following table and alongside the graph input tool. Demand Factor Initial Value Average American household income $40000 per year Roundtrip airfare from New York (JFK) to Las Vegas (LAS) $100 per roundtrip Room rate at the Grandiose Hotel and Casino which is near the Peacock $200 per night For each of the following scenarios begin by assuming that all demand factors are set to their original values and Peacock is charging $150 per room per night. If average household income increases by 25% from $40000 to $50000 per year the quantity of rooms demanded at the Peacock (falls/rises) from rooms per night to rooms per night. Therefore the income elasticity of demand is (negative/posive) meaning that hotel rooms at the Peacock are (inferior/normal good) . If the price of a room at the Grandiose were to decrease by 20% from $200 to $160 while all other demand factors remain at their initial values the quantity of rooms demanded at the Peacock (falls/rise) from rooms per night to rooms per night. Because the cross-price elasticity of demand is (negative/positive) hotel rooms at the Peacock and hotel rooms at the Grandiose are (compliments/substitutes) . Peacock is debating decreasing the price of its rooms to $125 per night. Under the initial demand conditions you can see that this would cause its total revenue to (decrease/increase) . Decreasing the price will always have this effect on revenue when Peacock is operating on the (elastic/inelastic) portion of its demand curve.