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...



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)

1502,1001,000
2002,000800
2501,900600
3001,800400







As the price of tickets rises from $200 to $250, 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 for airline tickets in this price range is    elastic for vacationers because business travelers are    sensitive to changes in price.








Jun 09, 2022
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