14. Which of the following is true in ski-towns such as Crested Butte, Colorado and Whistler, British Columbia during the peak winter ski season as compared to the months of May and June?
a. Demand for motel rooms is higher.
b. Demand for motel rooms is lower.
c. There is a surplus of motel rooms.
d. The price of motel rooms will be lower.
ANS
a. Correct. There are more buyers of rental room services during the peak ski season than in the late spring when the mountains are muddy.
b. Incorrect. There are more buyers of rental room services during the peak ski season than in the late spring when the mountains are muddy.
c. Incorrect. There are more buyers of rental room services during the peak ski season than in the late spring when the mountains are muddy, which if anything will tend to create a shortage rather than a surplus.
d. Incorrect. During peak season when demand for rooms is high, people must generally pay a higher price for rooms than during the "off-peak" season.