Question
In: Economics
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:
Quantity Demanded Quantity Demanded
Price (business travelers) (vacationers)
150 2,100 tickets 1,000 tickets
200 2,000 800
250 1,900 600
300 1,800 400
- 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.) Explain the difference.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose that the business travelers and vacationers have the following demand for airline tickets from New...
Suppose that the 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
150
2,100
1,000
200
2,000
800
250
1900
600
300
1800
400
As the price rises from $250-$300, the price elasticity of
demand for business travelers is _____ (3.33, .45, .30, 1) and the
price for elasticity of demand for vacationers is_____ (0.45 3.33,
2.20, .30) using the midpoint method....
2. Suppose that business travelers and vacationers have the following demand for airline tickets from New...
2. Suppose that business travelers and vacationers have the
following demand for airline tickets from New York to Boston:
Price Quantity Demanded (business
travelers) Quantity Demanded
(vacationers)
$150 2,100
tickets 1,000
tickets
200 2,000 800
250 1,900 600
300 1,800 400
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? (Use the midpoint method in your calculations.)
b. Why might vacationers have a different elasticity from
business travelers?
3. Business travelers and vacationers have different price elasticities of demand for airline tickets from Jacksonville...
3. Business travelers and vacationers have
different price elasticities of demand for airline tickets from
Jacksonville to Atlanta.
When the price of airline tickets increases by 20%, the number
of tickets bought by business travelers declines by 5%, and the
number of tickets bought by vacationers declines by 30%.
I) Calculate price elasticities of demand for
business travelers and vacationers, respectively.
II) Who is less sensitive to price change:
business travelers or vacationers?
Question# 3 Suppose that business travellers and vacationers have the following demand for FlyAlee airline tickets...
Question# 3
Suppose that business travellers and vacationers have the
following demand for FlyAlee airline tickets from Jeddah to
Dammam.
Price (SAR)
Qd-Business Travel
Qd- Vacation Travel
150
2100
1100
200
2000
800
250
1900
500
300
1800
200
As the price of tickets rises from SAR250 to SAR300, what is the
price elasticity of demand for
Business Travel (Show your workings)
Vacation Travel (Show your workings)
b. Why might vacationers have different elasticity than business
travelers?
Suppose the %...
A regional airline sells 200 tickets to New York City for an average price of $...
A regional airline sells 200 tickets to New York City for an
average price of $ 150 one way. Half of the people on the flight
will purchase a meal for $5.
The airline’s employee costs per flight include $500 each for the
pilot and copilot, and $200 for each flight attendant. The law
requires airlines to have at least one pilot, copilot, and flight
attendant for each flight. Fuel for the flight is expected to cost
$8,000, and the...
A regional airline sells 200 tickets to New York City for an average price of $...
A regional airline sells 200 tickets to New York City for an
average price of $ 200 one way. Half of the people on the flight
will purchase a meal for $6. The airline’s employee costs per
flight include $500 each for the pilot and copilot, and $200 for
each flight attendant. The law requires airlines to have at least
one pilot, copilot, and flight attendant for each flight. Fuel for
the flight is expected to cost $8000, and the...
How many days in advance do travelers purchase their airline tickets? Below are data showing the...
How many days in advance do travelers purchase their airline
tickets? Below are data showing the
advance days for a sample of 13 passengers on United Airlines
Flight 812 from Chicago to Los Angeles.
11, 7, 11, 4, 15, 14, 71
29, 8, 7, 16, 29, 249
(a) Calculate the mean, median, and mode.
(b) Which is the best measure of central tendency? Why?
(c) Base on your discussion in part (b), which is the best measure
of variation? Determine...
Evaluate the demand characteristics of airline tickets. Look at demand elasticities and competing product characteristics. Please...
Evaluate the demand characteristics of airline tickets. Look at
demand elasticities and competing product characteristics. Please
cite sources, thank you!
Consider the market for airline tickets. For the purpose of answering this question, suppose the airlines...
Consider the market for airline tickets. For the purpose of
answering this question, suppose the airlines are perfectly
competitive. Demand for airline tickets is given by Qd=3600-1000P
and supply is given by Qs=500P Draw a diagram of this market, where
the horizontal axis is total miles flown in a year, and the
vertical axis is price per mile. Show the effect on this market of
providing a subsidy of $1 a mile on the producer. Label the diagram
and identify...
Compare and contrast the demand factors which impact pricing of gas and airline tickets.
Compare and contrast the demand factors which impact pricing of
gas and airline tickets.
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