Question 1: Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Quantity Demanded Quantity Demanded (business travelers) Price (vacationers) 2,100 tickets 2,000 1,900 1,800 $150 1,000 tickets 200 800 250 600 300 400 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 Arc-Elasticity in your calculations.) b) Why might vacationers have a different elasticity from business travelers?
Question 1: Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Quantity Demanded Quantity Demanded (business travelers) Price (vacationers) 2,100 tickets 2,000 1,900 1,800 $150 1,000 tickets 200 800 250 600 300 400 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 Arc-Elasticity in your calculations.) b) Why might vacationers have a different elasticity from business travelers?
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Please can someone try to read my caption, I really want to see the arc diagram of this question. How do I draw the
![Question 1: Suppose that business travelers and vacationers have the following demand for airline tickets
from New York to Boston:
Quantity Demanded Quantity Demanded
(business travelers)
Price
(vacationers)
2,100 tickets
2,000
1,900
1,800
$150
1,000 tickets
200
800
250
600
300
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 Arc-Elasticity in your calculations.)
b) Why might vacationers have a different elasticity from business travelers?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15922805-1c88-4fef-aba0-df34470cdd15%2F0df2799e-50e3-4e02-ae3f-722ab1431210%2Fvigv1xo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1: Suppose that business travelers and vacationers have the following demand for airline tickets
from New York to Boston:
Quantity Demanded Quantity Demanded
(business travelers)
Price
(vacationers)
2,100 tickets
2,000
1,900
1,800
$150
1,000 tickets
200
800
250
600
300
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 Arc-Elasticity in your calculations.)
b) Why might vacationers have a different elasticity from business travelers?
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