Question
Suppose that business travelers and tourists have the following demand for airline tickets from Lahore to Karachi. price Quantity demanded (business travelers) Quantity demanded (tourists)
Suppose that business travelers and tourists have the following demand for airline
tickets from Lahore to Karachi.
price Quantity demanded
(business travelers)
Quantity demanded
(tourists)
$150 2100 1000
200 2000 800
250 1900 600
300 1800 400
As the price of ticket rises from $200 to $300, what is the price elasticity of demand for
(i) Business travelers
(ii) Tourists
(Use the midpoint method in your calculations.)
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Principles of economics
Authors: N. Gregory Mankiw
6th Edition
978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042
