elasticity for vacationers
Not what you're looking for?
I. Rank the following (please provide a brief explanation as well) from the most to least elastic.
1. beef
2. salt
3. European vacation
4. steak
5. Honda Accord
6. Dijon mustard
II. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
Price Qty. Demanded (business travelers) Qty. Demanded (vacationers)
$150 2,100 1,000
200 2,000 800
250 1,900 600
300 1,800 400
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 arc elasticity method in your calculations.)
b. Why might vacationers have a different elasticity than business travelers?
Purchase this Solution
Solution Summary
This job examines elasticity for vacationers.
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.