DescriptionThe output of this assignment is to be uploadedyou are encouraged to exercise creativity inpresenting your answers.Suppose that business travelers andvacationers have the following demand forairline tickets from New York to Boston:QuantityDemandedQuantityPriceDemanded(businetravelers)2,100 tickets2,0001,900(vacationers)$1501,000 tickets2008002506003001800400a. As the price of the ticket rises from $200 to$250, what is the price elasticity of demand for(1) business travelers(2) vacationers?b. explain why might vacationers have adifferent elasticity from business travelers?

a) (1) Price elasticity using midpoint method for Business travelers : Old price = $200, New price…

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Quantity Demanded Quantity Demanded Price (business travelers) 2,100 tickets 2,000 (vacationers) $150 1,000 tickets 200 800 250 1,900 600 300 1800 400 a. As the price of the ticket rises from $200 to $250, what is the price elasticity of demand for (1) business travelers (2) vacationers? b. explain why might vacationers have a different elasticity from business travelers?

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Quantity Demanded Quantity Demanded Price (business travelers) 2,100 tickets 2,000 (vacationers) $150 1,000 tickets 200 800 250 1,900 600 300 1800 400 a. As the price of the ticket rises from $200 to $250, what is the price elasticity of demand for (1) business travelers (2) vacationers? b. explain why might vacationers have a different elasticity from business travelers?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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