In November 2008, parking rates were increased substantially for the Big Blue Deck at Detroit's Metro...

 

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In November 2008, parking rates were increased substantially for the "Big Blue Deck" at Detroit's Metro Airport. According to an article in a local newspaper, "In December,...after parking rates jumped from $10 to $16 a day...fewer cars used the Big Blue Deck compared to the previous year.... Still, the move at the North Terminal structure brought in about $61,000 more than the previous December...." Year December 2007 December 2008 Rate $10 $16 Revenue $1,387,000 $1,448,000 Sources: Mary Francis Masson, "Metro Airport Parking Rate Hikes Worry Employees," Detroit Free Press, February 14, 2009; and Tanveer Ali, "Parking Dips; Revenue Soars," Detroit News, February 13, 2009. Use the information in the table above to calculate the price elasticity of demand for parking spaces at the Big Blue Deck using the midpoint formula. Assume that nothing happened between December 2007 and December 2008 to shift the demand curve for parking places. Price elasticity of demand is (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Given the price elasticity of demand that you just calculated, the demand for parking in the "Big Blue Deck" at Detroit's Metro Airport is In November 2008, parking rates were increased substantially for the "Big Blue Deck" at Detroit's Metro Airport. According to an article in a local newspaper, "In December,...after parking rates jumped from $10 to $16 a day...fewer cars used the Big Blue Deck compared to the previous year.... Still, the move at the North Terminal structure brought in about $61,000 more than the previous December...." Year December 2007 December 2008 Rate $10 $16 Revenue $1,387,000 $1,448,000 Sources: Mary Francis Masson, "Metro Airport Parking Rate Hikes Worry Employees," Detroit Free Press, February 14, 2009; and Tanveer Ali, "Parking Dips; Revenue Soars," Detroit News, February 13, 2009. Use the information in the table above to calculate the price elasticity of demand for parking spaces at the Big Blue Deck using the midpoint formula. Assume that nothing happened between December 2007 and December 2008 to shift the demand curve for parking places. Price elasticity of demand is (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Given the price elasticity of demand that you just calculated, the demand for parking in the "Big Blue Deck" at Detroit's Metro Airport is