Explain how much should jet blue charge

Reference no: EM1330419

How do you calculate the price using the mark-up rule for Jet Blue Airlines?

Jet Blue Airlines has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50. Based on their expectations of profitability, Jet Blue realizes the price of a Coach seat should be $175 (one way). How much should Jet Blue charge for a Business Class ticket?

Reference no: EM1330419

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