The Price Elasticity of Demand for Airplane Travel One Week

question 15

Multiple Choice

The price elasticity of demand for airplane travel one week in advance of the departure date is most likely to be

• A)negative.
• B)equal to zero.
• C)between zero and 1.
• D)equal to 1.
• E)greater than 1.

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Definitions:

Labor

The measure of the work done by human beings in the economy, often referred to in terms of hours worked or total workforce.

Capital

Refers to the financial assets or resources that businesses use to fund their operations and grow, including cash, equipment, and buildings.

Increasing Returns

A concept in economics where an increase in the scale of production leads to a greater than proportional increase in output.

Copper Mines

Sites or locations where copper ore is extracted from the earth for commercial value and industrial use.