Suppose that business travelers and vacationers have the following demand for airline tickets from Vancouver to Calgary.

Price	Quantity Demanded (Business travelers)	Quantity Demanded (Vacationers)
$250	2000	900
$300	1800	700

a) Suppose the price of tickets rises from $250 to $300. Calculate the elasticity of demand for business travelers. Is the elasticity of demand elastic or inelastic? Explain. (3 marks)

b) For the same price change, calculate the elasticity of demand for vacationers. Is the elasticity of demand elastic or inelastic? Explain. (3 marks)

c) Why do you think the elasticity of demand for airline tickets by business travelers is different from that of vacationers? Explain. (2 marks)