The price elasticity of demand for air travel differs radically from first-class (-1.3) to unrestricted coach (-1.4) to restricted discount coach (-1.8). Given these elasticities, what are the optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?   MR=Px(1+1/Ed)                                                  MC                PED                                OP CLass     ($)         (Ed)         (P*) First Class $120 -1.3 $ Unresticted coach $120 -1.4 $ Restricted Discount  $120 -1.8 $

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