The Price Elasticity of Demand for Leisure Air Travel Is

question 132

Multiple Choice

The price elasticity of demand for leisure air travel is 1.60.Therefore,a

• A) 10 percent decrease in the price of leisure air travel will cause a 16 percent decrease in the amount of leisure air travel.
• B) 10 percent decrease in the price of leisure air travel will cause a 16 percent increase in the amount of leisure air travel.
• C) 16 percent decrease in the price of leisure air travel will cause a 10 percent increase in the amount of leisure air travel.
• D) a 16 percent decrease in the price of leisure air travel will cause a 10 percent decrease in the amount of leisure air travel.

---

Definitions:

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various methods such as teaching, training, research, and discussion.

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.

New Approaches

Innovative or alternative methods and strategies introduced to address issues or improve existing processes.

Standard of Living

The measure of affluence, convenience, tangible assets, and basic needs present for a particular economic group or location.