Question
Space-X Blue Origin Year Lunar travelers Ticket price Lunar travelers Ticket price 2030 130 $120,000 -- -- 2031 180 $100,000 -- -- 2032 170 $100,000
Space-X
Blue Origin
Year
Lunar travelers
Ticket price
Lunar travelers
Ticket price
2030
130
$120,000
--
--
2031
180
$100,000
--
--
2032
170
$100,000
100
$120,000
Some background:
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.
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 Space-X's perspective? Explain carefully.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
9781292016924
