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This question is based on the following information which indicates the demand f...
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This question is based on the following information which indicates the demand for airline tickets between Johannesburg and Cape Town for business travellers and holiday travellers.
Price (P) | Business travellers Quantity demanded | Holiday travellers Quantity demanded |
1 700 | 1 600 | 1 200 |
3 000 | 1 400 | 600 |
Using the midpoint method, calculate the price elasticity for business travellers and holiday travellers if the price increases from R1 700 to R3 000. The price elasticity of business travellers is
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