The Table below provides details of the demand for Avanti West Coast return train tickets from London to Lancaster on weekday mornings before 9.30 am. Ticket Price Group A Group B £25.00 250 225 £35.00 225 220 £50.00 150 175 £100.00 15 140 £175.00 110 i) Calculate the overall demand elasticity for all travellers as well as those for groups A and B over the full range of fares (i.e., £25.00 to £170.00). ii) In the light of the answers to i), identify the characteristics of consumer Groups A and B. What policy ought Avanti West Coast adopt to prevent over-crowding on their morning trains?

The Table below provides details of the demand for Avanti West Coast return train tickets from London to Lancaster on weekday mornings before 9.30 am. Ticket Price Group A Group B £25.00 250 225 £35.00 225 220 £50.00 150 175 £100.00 15 140 £175.00 110 i) Calculate the overall demand elasticity for all travellers as well as those for groups A and B over the full range of fares (i.e., £25.00 to £170.00). ii) In the light of the answers to i), identify the characteristics of consumer Groups A and B. What policy ought Avanti West Coast adopt to prevent over-crowding on their morning trains?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 3P

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