With Higher Fuel Costs,airlines Raise Their Average Fare from $0

question 102

Multiple Choice

With higher fuel costs,airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day.What is the price elasticity of demand for air travel when the price is $1 per passenger kilometre?

• A)2
• B)0.75
• C)1.33
• D)50
• E)0.5

---

Definitions:

Immunizations

The process of administering vaccines to stimulate the body's immune response against specific infectious diseases.

Emphysema

A long-term, progressive disease of the lungs that primarily causes shortness of breath due to over-inflation of the air sacs (alveoli).

Oxygen Dependency

A condition in which a person requires supplemental oxygen to maintain adequate oxygen levels in their blood.

Psychiatric Services

Medical services that focus on diagnosing, treating, and preventing mental health disorders, often involving both medication and psychotherapy.