Charge higher prices when rooms are in higher demand

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Reference no: EM131167237

Why might it be bad for hotels to not charge higher prices when rooms are in higher demand?

Arbitraguers might establish a black market by reserving rooms and then selling the reservations to customers

Rooms may be rationed

Without the profit from these high demand times, hotels would have less of an incentive to build or expand, making the long-run scarcity problem even worse

All of the above.

Reference no: EM131167237

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