In 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been reversed: more U.S. residents visited Canada than vice versa. Why did the tourism reverse direction? Canada didn’t get any warmer from 1992 to 2002 – but it did get cheaper. The reason is a large change in the exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20% more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world. Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1. One reason is that foreign travel is a luxury good for most people – you may regret not going to Paris this year, but you can live without it. A second reason is that a good substitute for foreign travel typically exist – domestic travel. A Canadian who finds it too expensive to vacation in San Francisco this year is likely to find that Vancouver is a pretty good alternative. Give an example of a good that has a high price elasticity of demand.

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In 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been reversed: more U.S. residents visited Canada than vice versa. Why did the tourism reverse direction? Canada didn’t get any warmer from 1992 to 2002 – but it did get cheaper. The reason is a large change in the exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20% more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world. Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1. One reason is that foreign travel is a luxury good for most people – you may regret not going to Paris this year, but you can live without it. A second reason is that a good substitute for foreign travel typically exist – domestic travel. A Canadian who finds it too expensive to vacation in San Francisco this year is likely to find that Vancouver is a pretty good alternative. Give an example of a good that has a high price elasticity of demand.
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Question 2. In 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been
reversed: more U.S. residents visited Canada than vice versa.
Why did the tourism reverse direction? Canada didn't get any warmer from 1992 to 2002 - but it did get cheaper. The reason is a large change in the
exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods
and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20%
more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world.
Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1.
One reason is that foreign travel is a luxury good for most people - you may regret not going to Paris this year, but you can live without it. A second reason
is that a good substitute for foreign travel typically exist - domestic travel. A Canadian who finds it too expensive to vacation in San Francisco this year is
likely to find that Vancouver is a pretty good alternative.
Give an example of a good that has a high price elasticity of demand.
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Ashley Gray
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il price most the oil importers are built with cartels. The only way to succeed with this idea of increase oil prices is
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Transcribed Image Text:+ /courses/185189/discussion_topics/838206?module_item_id=6045692 S Canvas BIOL 111 Textbook SMATH 140 Textbook PAGEC 105 Textbook Question 2. In 1992, 18.6 million Canadians visited the United States, but only 11.8 million U.S. residents visited Canada. By 2002, roles had been reversed: more U.S. residents visited Canada than vice versa. Why did the tourism reverse direction? Canada didn't get any warmer from 1992 to 2002 - but it did get cheaper. The reason is a large change in the exchange rate: in 1992 Canadian dollar was worth $0.80, but by 2002 it had fallen in the value by 20% to about $0.65. This means that Canadian goods and services, particularly hotel rooms and meals, were about 20% cheaper for Americans in 2002 compared to 1992. American vacations had become 20% more expensive for Canadians. Canadians responded by vacationing in their own country or in other parts of the world. Foreign travel is an example of a good that has a high price elasticity of demand: elasticity=4.1. One reason is that foreign travel is a luxury good for most people - you may regret not going to Paris this year, but you can live without it. A second reason is that a good substitute for foreign travel typically exist - domestic travel. A Canadian who finds it too expensive to vacation in San Francisco this year is likely to find that Vancouver is a pretty good alternative. Give an example of a good that has a high price elasticity of demand. Search entries or author O Reply Ashley Gray Sep 12, 2022 Unread ♫ ✓ Subscribe il price most the oil importers are built with cartels. The only way to succeed with this idea of increase oil prices is * □ 0 10:55 AM
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