Euppuss that business travelsrs and vscsnnsrs h’i’B thus fullnwjng demand fur airline tickets from Btn to Frankfurt Quantity: mmdsd’: Businsss…

As the price of airline tickets rises from $900 to $1100, what is the price elasticity of demand (using the midpoint method) for:

a)    Business travelers

b)   Vacationers

(For your answers, please round to two decimal places – Example: 2.13)

In Unit 2, we examined some of the basics of the economics of organizations. In this regard:

a)    Discuss what is meant by the “agency problem”.

b)   Identify and briefly discuss three ways that organizations can attempt to reduce the problem.