When Airlines Concentrate Their Service at a Few Major Airport

question 25

True/False

When airlines concentrate their service at a few major airport centres, this is called the "hub and spoke" system.

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Definitions:

Income Elasticity

A measure of how much the demand for a product or service changes relative to a change in consumers' income.

Total Revenue

The total income a firm receives from the sale of its goods or services before any costs or expenses are subtracted.

Least Elastic

Refers to the degree of responsiveness or sensitivity of demand or supply to changes in prices, with the least elastic being the least responsive.

Straight-Line Demand

Straight-Line Demand refers to a demand curve that shows a constant rate of change in the quantity demanded as price changes.