1.When the price of airfare from San Francisco to Hawaii changes from $560 to $610, the number...
Fantastic news! We've Found the answer you've been seeking!
Question:
1.When the price of airfare from San Francisco to Hawaii changes from $560 to $610, the number of tickets demanded changes from 650 to 620 per month.
a.What is the value of the price elasticity of demand (remember to use the midpoint formula)?Show your work!
|(620-650)/[(620+650)/2]/($610-$560)/[($610+$560/2)]| =
|[(-30)/(635)]/[($50)/($585)]| =
-0.04724/0.08547=
$-0.55
Course hero is saying the answer is positive 0.55 but I'm getting negative.
Posted Date: