2030 $120,000 $100,000 2032 $100,000 $120,000 Some background: 0 Space-X has been running Moon tours since 2025. It expanded its capacity from 150 to 200 between 2030 and 2031. At the same time, the company lowered its price so that the quantity demanded would increase to match capacity. I Blue Origin introduced a competing Moon tour in 2032. Although this caused a substantial drop in demand for SpaceX's tours, SpaceX continues to have signicant market power. (a) [Based on the price change that took place between 2030 and 2031, compute the own-price elasticity of demand for lunar travel with Space-X. Was the decision to change price a good one from SpaceX's perspective? Explain carefully. (b) At the beginning of 2034, suppose we observe some new data from the previous year: Space-X Blue Origin Year Lunar travelers Ticket price Lunar travelers Ticket price 2033 225 $85,000 80 $120,000 Graph the changes between 2031 and 2033 in the demand curve for and quantity demanded of lunar travel with Space-X. Label your diagram clearly. [Hint: you need to consider what happens between 2031 and 2032 and then between 2032 and 2033, and illustrate these effects on the graph.]