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Why may a hotel charge high prices for wine,soft drinks or bottled water and quite reasonable prices for food and still get away with such high prices
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Why may a hotel charge high prices for wine,soft drinks or bottled water and quite reasonable prices for food and still get away with such high prices

User Muirik
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Answer:

The prices of wine,soft drinks or bottled water are high because these items have an inelastic demand. People can't refuse to drink water because it's price is high. Water is needed for survival.

Demand is inelastic if a change in price has little or no effect on quantity demanded.

Prices for food is reasonable because demand is elastic. If prices are too high, the Quanitity demanded would fall.

I hope my answer helps you

Step-by-step explanation:

User VMh
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