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(a) What is Cross Price Elasticity? How can you relate cross price elasticity with type of the good? (b)Suppose that business travelers and vacationers

(a) What is Cross Price Elasticity? How can you relate cross price elasticity with type of the good? (b)Suppose that business travelers and vacationers have the following demand for airline tickets from Dhaka to Chittagong: Quantity Demanded (Business Travelers) Quantity Demanded (Vacationers) Price 15 210 100 20 200 80 25 190 60 30 180 40 As the price of tickets rises from $15 to $20, what is the price elasticity of demand for ) business travelers and (ii) vacationers? (c) Why might vacationers have a different elasticity from business travelers?

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