t business travelers and vacationers have the following demand for airline tickets from New York to Boston: Quantity Demanded by Business Travelers Quantity Demanded by Vacationers rs) (Tickets) (Tickets) 2,100 1,000 2,000 800 1,900 600 1,800 400

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Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
Price
Quantity Demanded by Business Travelers Quantity Demanded by Vacationers
(Dollars)
(Tickets)
(Tickets)
150
2,100
1,000
200
2,000
800
250
1,900
600
300
1,800
400
As the price of tickets rises from $200 to $250, the price elasticity of demand for business travelers is
, and the price elasticity of demano
for vacationers is
, using the midpoint method. Therefore, the demand for airline tickets in this price range is
elastic for
vacationers because business travelers are
sensitive to changes in price.
Transcribed Image Text:Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Dollars) (Tickets) (Tickets) 150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400 As the price of tickets rises from $200 to $250, the price elasticity of demand for business travelers is , and the price elasticity of demano for vacationers is , using the midpoint method. Therefore, the demand for airline tickets in this price range is elastic for vacationers because business travelers are sensitive to changes in price.
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