Use the Case Below to Answer the Following Question(s)

Use the case below to answer the following question(s) .
The Tipton Hotel is considering a major remodeling effort and needs to determine the best combination of rates and suite sizes to maximize revenues.Currently,the hotel has 755 suites with the following history: Each market segment has its own price/demand elasticity.Estimates are: This means,for example,that a 1% decrease in the price of a standard suite will increase the number of suites sold by 1.5%.Similarly,a 1% increase in the price will decrease the number of suites sold by 1.5%.For any pricing structure (in $) ,the projected number of suites of a given type sold (we will allow continuous values for this problem) can be found using the formula:
(Historical average number of suites sold) + (Elasticity) (New price - Current price) (Historical average number of suites sold) /(Current price)
The hotel owners want to keep the price of a standard suite between $70 and $90; a gold suite between $90 and $110; and a platinum suite between $120 and $149.
Define S = price of a standard suite,G = price of a gold suite,and P = price of a platinum suite.
-The projected number of total suites sold or the total suite capacity is modeled by the constraint ________.

A) 1,755 + 6.176471S + 4.081633G + 1.079137P ≥ 755
B) 6.176471 + 1,730.755S + 1.079137G + 4.081633P ≥ 755
C) 1,775 - 6.176471S - 4.081633G - 1.079137P ≤ 755
D) 1.079137 - 6.176471S - 4.081633G - 1,730.755 P ≤ 755

Correct Answer:

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