Question
An airline estimates that the price elasticity of demand for business travellers (who travel on weekdays) is -4, while the price elasticity of demand for
An airline estimates that the price elasticity of demand for business travellers (who travel on weekdays) is -4, while the price elasticity of demand for vacation travelers (who travel on weekends) is -5. If the airline price discriminates (and costs are same), what will be the ratio of weekday to weekend prices?
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
