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Managerial Economics · Quiz 2 · 3 Aug 2025 · May 2025 term

Question 1: Suppose that both Air India and Indigo charge a price of …

Question 1

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Based on the above data, answer the given subquestions.

Suppose that both Air India and Indigo charge a price of $300 each for a round-trip ticket between Kolkata and Delhi. What is the price elasticity of demand for Indigo flights between Kolkata and Delhi? (please ignore the sign)

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Correct answer: 3 (accepted within ±0.1)

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Question 1 of 31 in the IIT Madras BS Managerial Economics (Managerial Economics) Quiz 2 paper sat on 3 Aug 2025, in the May 2025 term (IIT M DEGREE AN EXAM QDB2 03 Aug 2025). It carries 1 mark.

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