Slide 1 Slide 2 Outline Airline ticket pricing The demand function Determinants of demand Elasticity of demand Price elasticity, revenue, and marginal revenue Slide 3 Airline…

Slide 1 Slide 2  Three sections  Section 1  Discriminatory two-part tariff  Section 2  Uniform two-part tariff  Section 3  Applications of two-part tariff…

1. PROBLEMSMarket Demand Analysis:Q1. Construct a demand schedule for a product X for alternative prices Re.1, 2, 3, 4,and 5 given its demand function : Dx = 90 – 2Px.…

Problems from last session A cost function for a bus that runs between the city and a college is estimated by TC = 100P – 64P2 + 4P3, P indicates the number of passengers…

Intro to Econometrics Intro to EconometricsUsing Excel for Estimation Descriptive StatisticsMeasures of CentralTendencyMeanThe averageMedianThe middleModeThe most frequent…

Managerial Economics & Business Strategy Managerial Economics & Business Strategy Chapter 3 Quantitative Demand Analysis Overview I. The Elasticity Concept Own Price…