2. Suppose that business traveler and vacationers havethe following demand for airline tickets from NewYork to Boston:Quantity DemandedPrice(business travelers)Quantity Demanded(vacationers)$1502,100 tickets1,000 tickets6.2002,000800250J1,9006003001,800400a. As the price of tickets rises from $200 to $250, whatis the price elasticity of demand for (i) businesstravelers and (ii) vacationers? (Use the midpointmethod in your calculations.)

The given data are-For the tickets of business travelers-For the tickets of vacationers-

Price Quantity Demanded (business travelers) Quantity Demanded (vacationers) . $150 2,100 tickets 1,000 tickets 200 2,000 800 250 1,900 600 300 4 1,800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? (Use the midpoint

Price Quantity Demanded (business travelers) Quantity Demanded (vacationers) . $150 2,100 tickets 1,000 tickets 200 2,000 800 250 1,900 600 300 4 1,800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? (Use the midpoint

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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