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

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.When the price is $1 per passenger kilometre,the demand for air travel is

A) perfectly elastic.
B) perfectly inelastic.
C) unit elastic.
D) elastic.
E) inelastic.