Question: Elasticity: Measuring Responsiveness - End of Chapter Problem Individuals differ in their willingness to pay for air travel, and airlines would like to charge different

Elasticity: Measuring Responsiveness - End of Chapter Problem Individuals differ in their willingness to pay for air travel, and airlines would like to charge different prices to different individuals based on their willingness to pay. Airlines typically attempt to divide passengers into two types: leisure travelers and [busines ravetes Suppose ha ananline te chaging 5400 Washington D.C. The accompanying tables provide information on quantity demanded for air travel for leisure travelers and business travelers. Price (per ticket) $400 Ouantity-leisure travelers (tickets per flight) 100 Price (per ticket) $400 Ouantity-business travelers (tickets per flight) 100 $500 50 $500 90 a. What is the absolute value of price elasticity for leisure travelers if the airline increases the price to $500? Round your answer to the nearest whole number

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