Suppose that business travelers and vacationers have the following demand for airline tickets from Karachi to Dubai: Price $150 $200 $250 $300 Quantity Demanded (Business Travelers)2100 Tickets 2000...

Suppose that business travelers and vacationers have the following demand for airline tickets from Karachi to Dubai:

Price $150

$200

$250

$300

 Quantity Demanded

(Business Travelers)2100 Tickets

2000

1900

1800

Quantity Demanded

(vacationers)2100 Tickets

2000

1900

1800

a. As the price of tickets rises from $150 to $200, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? (Use the midpoint method in your calculations.)

b. Why might vacationers have a different elasticity from business travelers?

c. What would you recommend based on the above information for airline to increase the revenue?