Suppose that Airblue and AirSail have the following demand for tickets from Karachi to Islamabad during the month of Ramadan. Price Quantity Demanded (Airblue) Quantity Demanded (AirSail) Rs. 65,00  350 Tickets 200 Tickets Rs. 7,000  280 190 Rs. 11,000  200 160   As the price of tickets rises from Rs. 7,000 to Rs. 11,000 due to Eid-UL-Fitr, what is the price elasticity of demand for (a) Airblue and (b) AirSail? (Use the midpoint method in your calculations.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. Suppose that Airblue and AirSail have the following demand for tickets from Karachi to Islamabad during the month of Ramadan.

Price

Quantity Demanded

(Airblue)

Quantity Demanded

(AirSail)

Rs. 65,00

 350 Tickets

200 Tickets

Rs. 7,000

 280

190

Rs. 11,000

 200

160

 

As the price of tickets rises from Rs. 7,000 to Rs. 11,000 due to Eid-UL-Fitr, what is the price elasticity of demand for (a) Airblue and (b) AirSail? (Use the midpoint method in your calculations.

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