2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York

Question:

2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

QUANTITY DEMANDED QUANTITY DEMANDED PRICE (BUSINESS TRAVELERS) (VACATIONERS)

$150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400

a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? (Use the midpoint method in your calculations.)

b. Why might vacationers have a different elasticity than business travelers?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Sep 27, 2024 07:01 AM

See More Questions

please answer me this question as soon as possible BBA Microeconomics 2nd semester B Assignment No. 3 1. A 10 percent increase in income brings about a 15 percent decrease in the demand for a good....
What are the possible coping strategies that could help freelancers to overcome financial challenges and improve their financial well-being? Is there any significant impact in the financial...
In a paper, explain the IS/IT strategies involved in the case study. 1. What roles and positions were involved in the innovations and disruptions within the industry? 2. Who are the key stakeholders...
Repeat Problem 25.81 with charge and discharge currents of 30 A. The charging and discharging times will now be 1.7 h rather than 5.0 h. What differences in performance do you see?
2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: QUANTITY DEMANDED QUANTITY DEMANDED PRICE (BUSINESS TRAVELERS) (VACATIONERS)...
Refer to the facts in Exercise 11-42. After the publication of recent scientific test results, the government has banned the sale of product KC. IF KC is produced, it must be disposed of in an...
QUESTION 1 0 What should be the name of the file that has the following content: public class X { } class Y { public static void main ( String [ ] args ) { System.out.println ( " Hello " ) ; } } A ....
1. For each of the following pairs of goods, which good would you expect to have more elastic demand and why? a. required textbooks or mystery novels b. Beethoven recordings or classical music...
3. Suppose that your demand schedule for compact discs is as follows: QUANTITY DEMANDED QUANTITY DEMANDED PRICE (INCOME $10,000) (INCOME $12,000) $ 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 a. Use...
HIMSS Nursing Informatics Awareness Task Force. (2007). An emerging giant: Nursing informatics. Nursing Management, 38(3), 3842.
Newport Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $235,000. The equipment will have an...
During batting practice, two pop flies are hit from the same location, 2 s apart. The paths are modeled by the equations h =-16t + 56t and h = -1612+1561-248, where t is the time that has passed...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,480 per unit and then sells them to retail customers for an average price of $2,600 each. The company's...
Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 Beginning Raw Materials, 1/1/18 Beginning Work in Process, 1/1/18 Direct Labor for 2018 Ending...
1. Calculate the mean, standard deviation, and n for the data given. 2. An experiment was run by the Soho County School District that suggested having a routine sleep schedule improved average grades...
Consider the circuit shown in Figure P28.9. Find (a) The current in the 20.0- resistor and (b) The potential difference between points a and b.
Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...
Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. a. How does this policy affect national saving, domestic investment, net capital outflow, the...
The chapter notes that the rise in the U.S. trade deficit during the 1980s was due largely to the rise in the U.S. budget deficit. On the other hand, the popular press sometimes claims that the...
The chapter notes that the rise in the U.S. trade deficit during the 1980s was due largely to the rise in the U.S. budget deficit. On the other hand, the popular press sometimes claims that the...
[The following information applies to the questions displayed below.] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and...
62. You know the following information about the Davis National Bank Given this information, what is this firm's Increase in Undivided Profits? A. $300 B. $150 C. ($50) D. $120 E. $80
Moving to the next question prevents changes to this answer Question 8 Why do you need to know required rate of return and expected rate of return when you invest? TTT Arial 3 [12 TEE Moving to the...

2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York

Question:

Step by Step Answer:

Principles Of Macroeconomics

Students also viewed these Business questions