Microeconomics

Kindly answer the following questions

(4 Marks) The following demand for airline tickets between Johannesburg and cape Town for business travelers and holiday travelers. 700 | 200 3 ooo 4 ooo Business travellers (quantity demanded) 1 soo | 600 | 400 200 1 ooo Holiday travellers (quantity demanded) 1 600 1400 | 200 1 ooo soo 600 Assur-IE that the pnce increases from R3 000 to R3 500. The difference between the price elasticity for business travelers and the price elasticity for holiday travelers is because busiress travelers travelling between Johannesburg and Cape Town, airline tickets are more of a necessity than for holiday travelers. Therefore, pnce elasticity for business travelers is tor holiday travelers. a) Inelastic b) Elastic c) Urutary elastic d) Perfectly elastic UESTION 20 compared to the price elasticity (4 Marks) A mend of yours who owns a flower-seling business has the following opinion about the law of demand: She does not tink mat the hw ot demand is valid for red roses, because during February, when the price of red roses was very high, she sold many rmre. It therefore seems that there is a posive relationship between me price of red roses and me quanty deman&d of it Which one of the folbwing is me best respmse to her argument? a) You with her and inocate that based on me evidence for red roses, the law of demand does not apply b) her and arge that the law of &mand is only applicable to a few goods and c) You disagree with her by statrg tuat her hforrnatjon rrwst be incorrect. d) demanded might be me rewtt of some %ctor and not the increase in tre price.