When the price of a cruise rises from $19,500 to 20,500, the quantity demanded decreases from $2,100 to 1,900 travelers. Use this information to calculate the price elasticity of demand for cruises. The price of a cruise increased by-------percent. The quantity of cruises demanded decreased by---------percent. So the price elasticity of demand for cruises is --------percent. Please help me , show the work.
When the price of a cruise rises from $19,500 to 20,500, the quantity demanded decreases from $2,100 to 1,900 travelers. Use this information to calculate the price elasticity of demand for cruises. The price of a cruise increased by-------percent. The quantity of cruises demanded decreased by---------percent. So the price elasticity of demand for cruises is --------percent. Please help me , show the work.
Related textbook solutions
Related questions
Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
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?
b. Why might vacationers have a different elasticity from business travelers?
| Price | Quantity Demanded (business travelers) | Quantity Demanded (vacationers) |
|---|---|---|
| $150 | 2,100 tickets | 1,000 tickets |
| $200 | 2,000 tickets | 800 tickets |
| $250 | 1,900 tickets | 600 tickets |
| $300 | 1,800 tickets | 400 tickets |
1. What is price elasticity of demand when prices increase from $3 to $4 and quantity decrease from 90 cups to 70 cups?
2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
| Price | Quantity Demanded by Business | Quantity Demanded by Vacationers |
| 150 | 2100 | 1000 |
| 200 | 2000 | 800 |
| 250 | 1900 | 600 |
| 300 | 1800 | 400 |
As the price of tickets rises from $200 To $250, what is the price elasticity of demand for a) business travelers and b) vacationers? Use the midpoint method to calculate. Why might vacationers have a diffeent elasticity from business travelers?
3. How can sellers utilize the price elasticity of demand for maximum total revenue?
Suppose that business travelers and vacationers have the following demand for airline tickets
Price Qty. Demanded (business travelers) Qty. Demanded (vacationers)
| price | Tickets Demanded (business travelers) | Tickets Demanded (Vacation travelers) |
| 150 | 2100 | 1000 |
| 200 | 2000 | 800 |
| 250 | 1900 | 600 |
| 300 | 1800 | 400 |
1A. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for Business Travelers. Is demand elastic or inelastic? Show your work
Illustrate the demand curves on the graph.
1B. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for Vacationers. Is demand elastic or inelastic? Show your work!
1C. Why might vacationers have a different elasticity than business travelers?
Suppose that your demand schedule for compact disks is as follows:
| price | quantity of demanded if income = 10,000 | quantity of demanded if income = 12,000 |
| 8 | 40 | 50 |
| 10 | 32 | 40 |
| 12 | 24 | 30 |
| 14 | 16 | 20 |
| 16 | 8 | 12 |
2A. What is the numerical income elasticity of demand as your income increases from $10,000 to $12,000 if the price of the CDs is $12*. Is this product a normal good or an inferior good based on your calculation? Show your work!
2B. What is the numerical income elasticity of demand as your income increases from $10,000 to $12,000 if the price of the CDs is $16*. Is this product a normal good or an inferior good based on your calculation? Show your work!
