The government of Byngia has introduced a new tax on airline travel. Byngia has two types of travelers, business travelers and leisure travelers. Business travelers in Byngia have an elasticity of demand of -1.2, while Byngian leisure travelers have an elasticity of -3.0.
Airlines can price discriminate between these groups; that is, they can charge different prices to the different types of fliers in the market. Which type of travel will bear the larger burden of the tax? Explain.