Given the rise in the price of a plane ride, what percentage change in the price of
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Given the rise in the price of a plane ride, what percentage change in the price of a train ride will leave the quantity demanded of train rides unchanged?
The price of a plane ride rises by 10 percent. The price elasticity of demand for plane rides is 0.5 and the price elasticity of demand for train rides is 0.2. The cross elasticity of demand for train rides with respect to the price of a plane ride is 0.4.
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SureThe percentage change in the quantity demanded of train rides is020 This means that when the pri...View the full answer
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