people differ in their willingness to pay for air travel, and air lines would like to try and charge different prices to different people. airlines typically attempt to divide passengers into two types: leisure travelers and business travelers. suppose that an airline is charging $400 per ticket for all passengers on flights between new york and washington, d.c. furthermore, suppose it is known that leisure travelers demand 100 tickets per flight at the price of $400 per ticket and 50 tickets per flight at a price of $500 per ticket, while business travelers demand 100 tickets per flight at a price of $400 per ticket and 90 tickets per flight at a price of $500 per ticket. a) using the midpoint method, calculate and desribe the price elasticity of demand for both types of passengers if the airline raises their ticket price to $500. b) calculate the change in total revenue from each group. c) interpret the values you have calculated - are these values consistent with what you would have expected to see, given the context of this problem? explain why or why not.
