(a) If an airline increases prices for business class flights by 8%, demand falls by about 2.5%....
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(a) If an airline increases prices for business class flights by 8%, demand falls by about 2.5%. Estimate the elasticity of demand. Is demand elastic, inelastic or unit elastic?
(b) Explain whether you would expect a similar result to hold for economy class flights.
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a E 25 8 03125 so inelastic b ...View the full answer
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