Problem
The demand curve for round trip air transportation between cities is given by Q= 5,000P^-0.8 X^0.2 y^0.5 z^.2 where P is price, x is flying time, y is air distance, and z is total population in the two cities. Given that for two cities, x= 3 hours, y= 1600 miles, and z= 5,000,000, the demand curve is given by Q= 5,445, 630 P^-0.8.
A. What will be the number of roundtrip tickets demanded between these cities if the price is P= 600?
B. What will happen to the quantity demanded if: (i.) the price increases by 1%? (ii.) the population in these cities increase by 1 %?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.