The hurricane in the Bahamas caused a small decrease in the supply of hotel rooms but...

The hurricane in the Bahamas caused a small decrease in the supply of hotel rooms but a very large decrease in demand for hotel rooms as tourists cancel their planned trips. The result of these two effects on the market for hotel rooms is:

Group of answer choices

an increase in the equilibrium price and a decrease in the equilibrium quantity

a decrease in the equilibrium price and a decrease in the equilibrium quantity

an unknown change in the equilibrium price and a decrease in the equilibrium quantity

a decrease in the equilibrium price and an unknown change in the equilibrium quantity

Expert Solution

Rahul Sunny answered 2 years ago

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