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Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050
BuyFind

Principles of Microeconomics

7th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781305156050

Solutions

Chapter
Section
Chapter 5, Problem 2PA
Textbook Problem

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

Chapter 5, Problem 2PA, Suppose that business travelers and vacationers have the following demand for airline tickets from

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?

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Principles of Microeconomics
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