Question # 4As the lockdown around the traveling destinations of the world began to ease and there is an increase in the demand for tourism services. Following is the demand schedule for the two traveling destinations Turkey and Malaysia.Price Quantity Demanded TurkeyQuantity Demanded Malaysia150,00065,00050,000300,00048,00055,500450,00030,00058,000Using the midpoint formula calculate the price elasticity of demand when price increased from 150,000 to 300,000. Also explain and illustrates if the demand is elastic or inelastic.Find the cross-price elasticity of demand if the price of turkey package increased from 300,000 to 450,000. Explain if the two goods in question are substitute and complements.With the reference to your answer in part (a), suppose you are asked as a manager of traveling company to ensure maximum revenue generation for your firm in Turkey. Justify how you would increase the firm revenues.

Price elasticity of demand measures the percentage change in quantity demanded of a good due to a…

Answered: As the lockdown around the traveling…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question # 4

As the lockdown around the traveling destinations of the world began to ease and there is an increase in the demand for tourism services. Following is the demand schedule for the two traveling destinations Turkey and Malaysia.

Price	Quantity Demanded Turkey	Quantity Demanded Malaysia
150,000	65,000	50,000
300,000	48,000	55,500
450,000	30,000	58,000

Using the midpoint formula calculate the price elasticity of demand when price increased from 150,000 to 300,000. Also explain and illustrates if the demand is elastic or inelastic.
Find the cross-price elasticity of demand if the price of turkey package increased from 300,000 to 450,000. Explain if the two goods in question are substitute and complements.
With the reference to your answer in part (a), suppose you are asked as a manager of traveling company to ensure maximum revenue generation for your firm in Turkey. Justify how you would increase the firm revenues.

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