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Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston. Price Quantity Demanded (business travelers) Quantity Demanded
Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston.
| Price | Quantity Demanded (business travelers) | Quantity Demanded (vacationers) |
| $150 | 2,100 | 1,000 |
| $200 | 2,000 | 600 |
- As the price of tickets rises from $150 to $200, what is the price elasticity of demand for business travelers? Interpret your results. (Elastic or Inelastic)
- As the price of tickets rises from $150 to $200, what is the price elasticity of demand for vacationers? Interpret your results. (Elastic or Inelastic)
- Why might vacationers have a different elasticity than business travelers?
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Principles Of Macroeconomics
Authors: N Gregory Mankiw
8th Edition
1305971507, 9781305971509
