Suppose that business travelers and vacationers

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:
QUANTITY DEMANDED   QUANTITY DEMANDED     PRICE (BUSINESS TRAVELERS) (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 midpoint method in your calculations.)
b. Why might vacationers have a different elasticity than business travelers?

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