If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the peacock (falls, rises) from rooms per night to per night. therefore, the income elasticity of demand is (negative, positive) , meaning that hotel rooms at the peacock are (a normal good, an inferior good) .if the price of a room at the grandiose were to decrease by 10%, from $250 to $225, while all other demand factors remain at their initial values, the quantity of rooms demanded at the peacock (falls, rises) per night per night. because the cross-price elasticity of demand is (negative, positive), hotel rooms at the peacock and hotel rooms at the grandiose are (complements, substitutes) .peacock is debating decreasing the price of its rooms to $175 per night. under the initial demand conditions, you can see that this would cause its total revenue to (decrease, increase) . decreasing the price will always have this effect on revenue when peacock is operating on the (elastic, inelastic) portion of its demand curve.