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.
Correct Answer:
Verified
Correct Answer:
Verified
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