Suppose vacationers and business travelers have the following demand for airline tickets from New York to Boston: Price Quantity Demanded (Business Travelers) Quantity Demanded (Vacationers) 150 2100 1000 200 2000 800 250 1900 600 300 1800 400 As the price of tickets drops from $250 to $200, calculate the price elasticity of demand for business travelers and the price elasticity of demand for vacationers?
a) Business Travelers: _________ Elastic, Inelastic or Unitary? _________
b) Vacationers: __________ Elastic, Inelastic or Unitary? __________ Why might vacationers have a different elasticity than business travelers?