Konovalova and Vidishcheva (2013) report substantial negative (less than -1 ) cross-price elasticities of demand for travel

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Konovalova and Vidishcheva (2013) report substantial negative (less than -1 ) cross-price elasticities of demand for travel to the United Kingdom and France by both Spanish and Italian tourists. If the city tax on hotel stays in France falls, describe how this would affect the number of Spanish tourists visiting France and the United Kingdom. How would the market for tourism in the United Kingdom be affected?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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