Suppose there are two types of passengers: business travelers (B) and vacationers (V). The demands for airline tickets between Chicago and New York for both types of passengers are illustrated in the graph to the right. If an airline can price discriminate between the two types, then it should charge an airline ticket price of $ to business travelers (enter a numeric response using an integer) Price and cost (dollars per airline ticket) 800 750- 700- 650- 600- 550- www 500- 8900 450- 400- 350- 300- 250 200- 150 100- 50- of 0 -MC Dv MRB MRV DR WHYTA R 100 200 300 400 500 600 700 800 900 1000 Quantity of airline tickets

Suppose there are two types of passengers: business travelers (B) and vacationers (V). The demands for airline tickets between Chicago and New York for both types of passengers are illustrated in the graph to the right. If an airline can price discriminate between the two types, then it should charge an airline ticket price of $ to business travelers (enter a numeric response using an integer) Price and cost (dollars per airline ticket) 800 750- 700- 650- 600- 550- www 500- 8900 450- 400- 350- 300- 250 200- 150 100- 50- of 0 -MC Dv MRB MRV DR WHYTA R 100 200 300 400 500 600 700 800 900 1000 Quantity of airline tickets

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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