ZuoTi.Pro
Question

Suppose vacationers and business travelers have the following demand for airline tickets from New York to Boston:


Suppose vacationers and business travelers have the following demand for airline tickets from New York to Boston: 

image.png

a) As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? 

b) Why might vacationers have a different elasticity than business travelers?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

✔ Recommended Answer
Answer #1

3 3
Add a comment
Know the answer?
Add Answer to:
Suppose vacationers and business travelers have the following demand for airline tickets from New York to Boston:
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Suppose that business travelers and vacationers have the following demand for airline tickets from New York...

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

  • Suppose that business travelers and vacationers have thefollowing demand for airline tickets from New York...

    Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:As the price of tickets rises from $150 to $200, the price elasticity of demand for business travelers is (0.78, 0.17, 1, 1.28???) , and the price elasticity of demand for vacationers is (0.78, 0.17, 1, 1.28???) , using the midpoint method. Therefore, the demand for airline tickets in this price range is (less, more???) elastic for vacationers because business travelers are (less,...

  • (1.a) Suppose that business travelers and vacationers have the following demand for airline tickets from NY...

    (1.a) Suppose that business travelers and vacationers have the following demand for airline tickets from NY to Boston. Price Quantity Demanded (Business travelers) Quantity Demanded (vacationers) $150 2,100tickets990 1000tickets $200 2000kkkkk 800 $250 1900 600 $300 1800 400 As the price of tickets rises from $200 to $250, what is the price elasticity of demand for       (i)business travelers and (ii)vacationers? (Use the midpoint method in your calculations.)

  • 2. Problems and Applications Q2 Suppose that business travelers and vacationers have the following demand for...

    2. Problems and Applications Q2 Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Dollars) (Tickets) (Tickets) 150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400 As the price of tickets rises from $200 to $250, the price elasticity of demand for business travelers is (4.35, 0.23, 0.78, 1)  , and the price elasticity of demand for vacationers is...

  • 3. .   Suppose that business travelers and vacationers have the following demand for airline tickets from...

    3. .   Suppose that business travelers and vacationers have the following demand for airline tickets from Seattle to Washington, D.C.: Price Qty Demanded (# tickets) for business travelers Qty Demanded (# tickets) for vacationers $100 2,100 1,000 $150 2,000 800 $200 1,900 550 $250 1.800 400 As the price of tickets rises from $150 to $200, the price elasticity of demand for business travelers is __________. 2. Using the same data contained in #1, as the tickets rise from $150...

  • 2) Suppose that business travelers and vacationers have the following demand for airline tickets from Denver...

    2) Suppose that business travelers and vacationers have the following demand for airline tickets from Denver to Los Angeles: Price Quantity Demanded (business) Quantity Demanded (vacationers) $100 2,100 tickets 4,000 tickets $200 2,000 3,000 $300 1,900 2,000 $400 1,800 1,000 a) Calculate the price elasticity of demand for business travelers as the price goes from $300 to $400. (Use the midpoint method and show work) b) Calculate the price elasticity of demand for vacation travelers as the price goes from...

  • 7. Business travelers and vacationers have different demands for airline tickets. The following table shows the...

    7. Business travelers and vacationers have different demands for airline tickets. The following table shows the demand for tickets from Chicago to New York: Price Quantity Demanded (Business) $175 Quantity Demanded (Vacation) 2250 1250 $200 2200 1000 $225 2150 825 $250 2000 550 (a) As the price increases from $200 to $250, what is the price elasticity of demand for business travelers? What is the price elasticity of demand for vacationers? Use the midpoint formula provided in the lecture/notes/dispatch. Show...

  • SUBJECT: MACROECONOMICS WORD COUNT:1000-1500 The table below shows two demand schedules, 2002 and 2006, and one...

    SUBJECT: MACROECONOMICS WORD COUNT:1000-1500 The table below shows two demand schedules, 2002 and 2006, and one supply schedule.   Represent both demand curves and explain why one demand schedule differs from the other (use a graph). Represent the supply curve and explain why is upward / downward. Represent the equilibrium point E and explain why you chose that point. 2. 5. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:                                     Quantity Demanded                             Quantity...

  • Suppose two groups of consumers have the following demand for music concert tickets. Price $150 $200...

    Suppose two groups of consumers have the following demand for music concert tickets. Price $150 $200 $250 $300 Group A Quantity Demanded 2,100 2,000 1,900 1.800 Group B Quantity Demanded 1,000 800 600 400 a. As the price of tickets rises from $250 to $300, what is the price elasticity of demand for (i) group A and for (ii) group B? (Use the mid-point method in your calculation) b. Why might group A consumers have different elasticity from group B?...

  • Consider an airline trying to sell plane tickets to business travellers and tourists. The airline cannot...

    Consider an airline trying to sell plane tickets to business travellers and tourists. The airline cannot distinguish between the two at the point of sale, but knows that in general, business travelers have higher willingness to pay for better seats. Let Pf and Pc be the price of first class and coach tickets respectively. Suppose that business travelers are willing to pay $1000 for a first class seat and $400 for a coach seat, whereas tourists are willing to pay...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT