Question

vacationers and business travelers should possess...

different elasticities, in which the business travelers will have a higher price elasticity than the vacationers

different elasticities, in which the vacationers will have a higher price elasticity than the business travelers

the same elasticities

a slight difference in elasticity, but theres really not a good way to figure this out

Explanation:

To determine the correct answer, we analyze price elasticity of demand. Business travelers often have less flexibility (e.g., trips are work - related, less optional), so their price elasticity of demand for travel is lower. Vacationers have more flexibility (can choose when/if to travel, opt for cheaper alternatives), so their price elasticity of demand is higher. So vacationers have a higher price elasticity than business travelers.

Answer:

B. different elasticities, in which the vacationers will have a higher price elasticity than the business travelers