Compute price elasticity of demand between given two points


Last year the US low-cost-carrier Spirit Airlines entered the Dallas-Chicago market. The average ticket price for all airlines servicing the route fell from $200 to $180. After Spirit's entry, the number of passengers increased from 700 to 800 per day (these number are hypothetical, but reasonable). Calculate the price elasticity of demand between these two points. Show the computation.

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Microeconomics: Compute price elasticity of demand between given two points
Reference No:- TGS0512485

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