analyze the price elasticity of demand for each group
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Based on each group of travelers according to their price sensitivity, need help to analyze the price elasticity of demand for each group.
Problem:
Clear Blue Sky Airlines is under performing. The Raleigh-Durham to Chicago route is less profitable than our other routes.
Background...
Concerns and policy...
Please consider these fare restrictions in designing an appropriate price discrimination strategy for Clear Sky.
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Solution Summary
This posting assists with help to analyze the price elasticity of demand for each group.
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Let's focus on the following four identifiable customer market segments:
business, government, student, and leisure travelers.
I think the "price sensitivity" actually means the price elasticity, because price elasticity of demand refers to the percentage change in the quantity of a commodity demanded or supplied compared to a percentage change in its price. In the case of demand elasticity, however, an increase in price causes a decrease in quantity. Accordingly, elasticity would be negative, so the following discussion uses the absolute value of the ...
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