Consider Airfares on Flights Between New York and Minneapolis

Multiple Choice

Consider airfares on flights between New York and Minneapolis.When the airfare is $250,the quantity demanded of tickets is 2,000 per week.When the airfare is $280,the quantity demanded of tickets is 1,700 per week.Using the midpoint method,

A) the price elasticity of demand is about 1.43,and an increase in the airfare will cause airlines' total revenue to decrease.
B) the price elasticity of demand is about 1.43,and an increase in the airfare will cause airlines' total revenue to increase.
C) the price elasticity of demand is about 0.70,and an increase in the airfare will cause airlines' total revenue to decrease.
D) the price elasticity of demand is about 0.70,and an increase in the airfare will cause airlines' total revenue to increase.