2. Suppose that business travelers and tourists have the following demand for airlinetickets from Lahore to Karachi.priceQuantity demanded(business travelers)Quantity demanded(tourists)$15021001000200200080025019006003001800400As the price of ticket rises from $200 to $300, what is the price elasticity of demand forBusiness travelers(ii)Vacationers(Use the midpoint method in your calculations.)(20)

Elasticity using midpoint method = [(Q2 - Q1) / (P2 - P1)] (P1 + P2) / (Q1 + Q2)

2. Suppose that business travelers and tourists have the following demand for airline tickets from Lahore to Karachi. Quantity demanded (business travelers) Quantity demanded (tourists) price $150 2100 1000 200 2000 800 250 1900 600 300 1800 400 As the price of ticket rises from $200 to $300, what is the price elasticity of demand for (i) (i) Business travelers Vacationers (Use the midpoint method in your calculations.) (20)

2. Suppose that business travelers and tourists have the following demand for airline tickets from Lahore to Karachi. Quantity demanded (business travelers) Quantity demanded (tourists) price $150 2100 1000 200 2000 800 250 1900 600 300 1800 400 As the price of ticket rises from $200 to $300, what is the price elasticity of demand for (i) (i) Business travelers Vacationers (Use the midpoint method in your calculations.) (20)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2PA

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