The Short-Run Price Elasticity of Demand for Airline Travel Is

question 32

Multiple Choice

The short-run price elasticity of demand for airline travel is .05, while the long-run elasticity is 2.36. This means that a significant increase in airline ticket prices will cause airline companies to:

• A) collect less revenue from short-notice travelers.
• B) collect more revenue from travelers who book well in advance.
• C) lose money on short-notice travelers.
• D) collect less revenue from travelers who book well in advance.
• E) lose many of its short-notice travelers.

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Definitions:

Heart

An organ comprised of muscle in the majority of animals that circulates blood through the vessels of the circulatory system by pumping.

Angina

Chest pain or discomfort caused by reduced blood flow to the heart muscle.

Chest Pain

A discomfort or pain that one feels anywhere along the front of the body between the neck and upper abdomen.

Heart-Related

Pertains to any conditions, disorders, or diseases that affect the heart's function.