The estimated own price elasticities for rail travel are as follows:

First class 0.5 Commuting 0.4 Business 0.2 Personal 1.0 Leisure 1.4

^ Suggest reasons why elasticities for business travel are lower than those for commuting and leisure travel.

^ Which of the existing prices are at levels set either to maximize pro¢t or sales revenue? Which prices should be increased and which lowered to maximize revenue?