Question

Consider luxury weekend hotel packages in las vegas. When the price is $250, the quantity demanded is 2,000 packages per week. When the price is $280, the quantity demanded is 1,700 packages per week. Using the midpoint method, the price elasticity of demand is about question 7 options:

Answer 1

Answer: Elasticity of luxury weekend hotel packages in las vegas is -1.432.

Step-by-step explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.

Mid point method-

`e=(Q2-Q1)/((Q1+Q2)/(2) ) * ((P1+P2)/(2) )/(P2-P1)`
`e=(1700-2000)/((2000+1700)/(2) ) * ((280+250)/(2) )/(280-250)`

`e=(-300)/(1850) } * (265)/(30)`

`e= -0.16216*8.8333`

`e= -1.432`

Elasticity of luxury weekend hotel packages in las vegas is -1.432.