Question

As the lockdown around the traveling destinations of the world began to ease and there is an increase in the demand for tourism services. Following is the demand schedule for the two traveling destinations Turkey and Malaysia.

Price Quantity Demanded Turkey Quantity Demanded Malaysia
150,000 65,000 50,000
300,000 48,000 55,500
450,000 30,000 58,000

a. Using the midpoint formula calculate the price elasticity of demand when price increased from 150,000 to 300,000. Also explain and illustrates if the demand is elastic or inelastic. (Maximum 100 words)
b. Find the cross-price elasticity of demand if the price of turkey package increased from 300,000 to 450,000. Explain if the two goods in question are substitute and complements. (Maximum 100 words)
c. With the reference to your answer in part (a), suppose you are asked as a manager of traveling company to ensure maximum revenue generation for your firm in Turkey. Justify how you would increase the firm revenues. (Maximum 150 words)

Answer 1

Answer:

I hope it is 10000 don't mind