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.
Correct Answer:
Verified
Correct Answer:
Verified
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