When the price of a plane ticket on Virgin Atlantic rises from $200 to $250, the number of business travellers per month falls from 2000 to 1900. At the same time, the number of vacationers per month falls from 800 to 600. State whether the elasticities for (i) business travellers and (ii) vacationers are elastic or inelastic.

When the price of a plane ticket on Virgin Atlantic rises from $200 to $250, the number of business travellers per month falls from 2000 to 1900. At the same time, the number of vacationers per month falls from 800 to 600. State whether the elasticities for (i) business travellers and (ii) vacationers are elastic or inelastic.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 5SQP: Suppose a university raises its tuition from 3,000 to 3,500. As a result, student enrollment falls...

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