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

question 52

Multiple Choice

The short-run price elasticity of demand for airline travel is 0.05, 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 travellers.
• B) collect more revenue from travellers who book well in advance.
• C) lose money on short-notice travellers.
• D) collect less revenue from travellers who book well in advance.

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Audience Size

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