An airline estimates that the price elasticity of demand for business travelers (who travel on weekdays) is

Question:

An airline estimates that the price elasticity of demand for business travelers (who travel on weekdays) is -2, while the price elasticity of demand for vacation travelers (who travel on weekends) is -5. If the airline price discriminates (and costs are the same), what will be the ratio of weekday to weekend prices?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: