What is the absolute value of price elasticity for leisure travelers if the airline increases the price to $500? Round your answer to the nearest whole number. b.What is the change in total revenue for leisure travelers when the price increases to $500? c. What is the absolute value of price elasticity for business travelers if the airline increases the price to $500? Round your answer to the hundredths place.
Individuals differ in their
Price (per ticket) |
Quantity‑leisure travelers (tickets per flight) |
---|---|
$400 | 100 |
$500 | 50 |
Price (per ticket) |
Quantity‑business travelers (tickets per flight) |
---|---|
$400 | 100 |
$500 | 90 |
a. What is the absolute value of price elasticity for leisure travelers if the airline increases the price to $500? Round your answer to the nearest whole number.
b.What is the change in total revenue for leisure travelers when the price increases to $500?
c. What is the absolute value of price elasticity for business travelers if the airline increases the price to $500? Round your answer to the hundredths place.
d. What is the change in total revenue for business travelers when the price increases to $500?
To maximize total revenue, the airline should charge
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