Calculating Price based on Elasticity of Explorer Group

Question

For section 3, where we need to calculate the adjusted price of explorer group, why we use the maximum capacity 990 instead of the 900 demand from explorers when calculating the potential price change (where the answer says"The new price would therefore be €161.50, instead of the previous €170.")? The actual demand is 900 not 990

Answer 1

Hi Victoria,

As I flagged in your last Q&A, screenshots and better clarity are needed for us to best help you!

Personally, I don't see the 990. Rather, in the section you mentioned, their solution does indeed say 900:

Answer 2

Hi Victoria!

Actually, I struggle to find the 990. Can you send a screenshot of where you see it in the case?

Good luck!
Cristian

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