Q2. d i) If the airfare for Airline A to fly from Sydney to Melbourne increased from $200 to $250, the demand for Airline A falls from 1000 to 800. (2 marks) Using the midpoint formula, calculate the Price Elasticity of demand (PED) of Airline A. Q.2 d ii) If the airfare for Airline A increases by 25%, the demand for Airline B increases by 10%, calculate the Cross Elasticity demand for Airline A and Airline B. (3 marks) Q.2 d iii) Use your answer in Q.2 dii) to determine whether Airline A and Airline B are complements or substitutes. Explain. (3 marks) I