Suppose that business travelers and vacationers have the following demand for for airline tickets from New York to Boston? Price Quantity Demanded (Business travelers) Quantity Demanded (Vacationers) $150 2100 1000 $200 2000 800 $250 1900 600 $300 1800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (1) Business Travelers and (2) Vacationers? (use the midpoint method) b. Why might vacationers have a different elasticity from business travelers?
Suppose that business travelers and vacationers have the following demand for for airline tickets from New York to Boston? Price Quantity Demanded (Business travelers) Quantity Demanded (Vacationers) $150 2100 1000 $200 2000 800 $250 1900 600 $300 1800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (1) Business Travelers and (2) Vacationers? (use the midpoint method) b. Why might vacationers have a different elasticity from business travelers?
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...
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Suppose that business travelers and vacationers have the following demand for for airline tickets from New York to Boston?
Price | Quantity Demanded (Business travelers) | Quantity Demanded (Vacationers) |
$150 | 2100 | 1000 |
$200 | 2000 | 800 |
$250 | 1900 | 600 |
$300 | 1800 | 400 |
a. As the price of tickets rises from $200 to $250, what is the price
b. Why might vacationers have a different elasticity from business travelers?
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