1. Suppose the business travelers (BT) and vacationers (V) have the following demand for airline tickets from New York to Boston:

Price	Quantity Demanded (BT)	Quantity Demanded (V)
$150	2,100 tickets	1,000 tickets
$200	2,000 tickets	800 tickets
$250	1,900 tickets	600 tickets
$300	1,800 tickets	400 tickets

• As the price decreases from $250 to $200, what is the Price Elasticity of Demand (PED) for (i) (BT) and (ii) (V)? Use the Mid-Point Method to do the calculations.
• Now, calculate the PED for (V) at a Price Increase from $150 to $200.
• What market factors could explain the differences in Elasticity's between the two groups in A?

2.Suppose the demand schedule for Hard Drives is as follows:

Price	Quantity Demanded income = $10,000	Quantity Demanded income = $12,000
$ 8	40	50
$10	32	45
$12	24	30
$14	16	20
$16	8	12

• Use the MPM to calculate your PED as the price of hard drives decreases from $10 to $8 if (i) your income is $10,000 and (ii) your income is $12,000.
• Use the MPM to calculate your PED as the price of hard drives decreases from $14 to $12 if (i) your income is $10,000 and (ii) your income is $12,000.
• Do you see any similarities between the data outcomes from question 1 to question 2? If so, comment on the situation.