What do elasticities mean for optimal prices


The price elasticity of demand for air travel differs radically from first class (-0.3) to unrestricted coach (-0.4) to restricted discount coach (-0.9). What do these elasticities mean for optimal prices (fares) on a cross country trip with incremental variable coasts (marginal costs) equal to $120?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What do elasticities mean for optimal prices
Reference No:- TGS066909

Expected delivery within 24 Hours