If the Price Elasticity of Demand for Airline Tickets Is

question 140

Multiple Choice

If the price elasticity of demand for airline tickets is 2.0 for a leisure traveler and 0.5 for a business traveler, then a price-discriminating monopolist would charge

• A) a higher price for the business traveler than the leisure traveler.
• B) the same price for both travelers.
• C) a lower price for the business traveler than the leisure traveler.
• D) a less profitable price for the business traveler than the leisure traveler.

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