Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price (Dollars) Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Tickets) (Tickets) 150 2,100 1,000 200 2,000 800 250 300 1,900 1,800 600 400 and the price elasticity of demand for As the price of tickets rises from $250 to $300, the price elasticity of demand for business travelers is vacationers is , using the midpoint method. Therefore, the demand for airline tickets in this price range is business travelers are sensitive to changes in price. elastic for vacationers because

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price (Dollars) Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Tickets) (Tickets) 150 2,100 1,000 200 2,000 800 250 300 1,900 1,800 600 400 and the price elasticity of demand for As the price of tickets rises from $250 to $300, the price elasticity of demand for business travelers is vacationers is , using the midpoint method. Therefore, the demand for airline tickets in this price range is business travelers are sensitive to changes in price. elastic for vacationers because

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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