The price elasticity of demand for air travel differs radically from first-class (?1.3) to unrestricted coach (?1.4) to restricted discount coach (?1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?
DATE
Question answered on Jul 22, 2018
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Solution~000590087.zip (18.37 KB)
