2 Suppose that business travellers and holiday-makers have the following demand for airline tickets from Sydney to Melbourne: Quantity demanded Quantity demanded Price ($) (business travellers) (holiday-makerS) 150 2100 1000 200 2000 800 250 1900 500 300 1300 400 a As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travellers and (ii) holiday-makers? (Use the midpoint method in your calculations.) In Why might holiday-makers have a different elasticity than business travellers? 3 Suppose the price elasticity of demand for electricity is 0.2 in the short run and 0.7 in the long run. a Ifthe price of electricity rises from $0.25 to $0.40 per kilowatt hour, what happens to the quantity of heating oil demanded in the short run? In the long run? (Use the midpoint method in your calculations.) in Why might this elasticity depend on the time horizon? 4 A price change causes the quantity demanded of a good to decrease by 30 per cent, while the total revenue of that good increases by 15 per cent. Is the demand curve elastic or inelastic? Explain.9 Two drivers Itchy and Scratchy each drive up to a petrol station. Betore looking at the price and starting to pump petrol, Itchy says: 'I will buy 20 litres of petrol'. Scratchy says: 'I will buy $30 of petrol'. What is each driver's price elasticity of demand