Uppose that an airline is charging $400 per ticket for all passengers on flights between New York and Washington D.C. The accompanying tables provide information on quantity demanded for air travel for leisure travelers and business travelers.
Price Quantity‑leisure travelers
(per ticket) (tickets per flight)
$400 100
$500 50
Price Quantity‑business travelers
(per ticket) (tickets per flight)
$400 100
$500 90
a. What is the absolute value of price elasticity for leisure travelers if the airline increases the price to $500? Round your answer to the nearest whole number.
b.What is the change in total revenue for leisure travelers when the price increases to $500?
c. What is the absolute value of price elasticity for business travelers if the airline increases the price to $500? Round your answer to the hundredths place.
d. What is the change in total revenue for business travelers when the price increases to $500?
e. To maximize total revenue, the airline should charge
1. $400 to leisure travelers and $500 to business travelers.
2. $500 to both groups.
3. $400 to both groups.
4. $500 to leisure travelers and $400 to business travelers.
Solved
Show answers
More tips
- C Computers and Internet Can You Insert a Regular SIM Card into an iPad? Let s Find Out...
- F Food and Cooking Лечо: вкусное и простое блюдо для любой кухни...
- H Health and Medicine Relieving Swelling in Legs: Causes and Ways to Alleviate the Symptom...
- S Style and Beauty How to Get Rid of a Bruise: Tips and Tricks...
Answers on questions: Business
- B Business The unemployment rate is computed by the (lo4) a.nations unemployment insurance offices b.bureau of labor statistics c.department of commerce d.office of management and budget...
- B Business David believes that all promotional activities should be completely eliminated. what commonly held misconception does david likely have about promotion?...
- B Business Economics Assume there is a new international trade agreement that allows foreign countries to sell their products in the US, what can we predict will happen?...
- B Biology What do you see? Like really, what is this?...
- B Biology In an experiment the group is exsposed to the varible to be tesetd is called the...
- P Physics In the gene TATTCATTGTTA—TGATTT—ATTCG, CATTGTTA encodes for pepsin, a digestive enzyme. The rest of the sequence doesn’t code for any protein. Which sequence contains a mutation that...
- A Advanced Placement (AP) Help me plzzzz im confused...
- M Mathematics Larry s Landscaping is building a circular flower bed that can have a maximum area of 100 square feet To the nearest foot, the longest radius that Larry s Landscaping can use to make...
- M Mathematics Y-3=4(x-6) in slope form...
- A Arts Suppose that you are on a sports team that is one play away from winning a game. Which of these options do you think is the best way to choose the final play of the game? (A) Have...
Ответ: