| The clue comes from the statement, "number of rooms and costs are constant."
This is the supply of rooms, so "c" cannot be right and neither can "e"
"A" and "D" essentially say the same thing, that the demand shifts right in the summer and left in the winter. Both of these are inaccurate. In fact, the demand curve shifts left in the summer to indicate less demand and right in the winter to show more demand.
B is the correct answer. As demand increases, the demand curve will shift to the right. Demand for Ski lodges will go up in the winter so the curve will show a greater demand and thus a higher price in the winter.
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