Suppose that business travelers and vacationers have the following demand for airline tickets from Chicago to Miami:

Question:

Price Quantity Demanded

(business travelers)

Quantity Demanded

(vacationers)

$150 2,100 tickets 1,000 tickets 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 and business travelers have different elasticities?

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Principles Of Macroeconomics

ISBN: 9780357133491

9th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 28, 2024 08:00 AM

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Suppose that business travelers and vacationers have the following demand for airline tickets from Chicago to Miami:

Question:

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Principles Of Macroeconomics

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