The elasticity of supply for airplane travel one year in advance of the departure date is most likely to be
A)substantially lower than -1.
B)between -1 and zero.
C)between zero and 1.
D)around 1.
E)substantially greater than 1.

Question

Quizplus · Accepted Answer

The elasticity of supply for airplane travel one year in advance is likely to be substantially greater than 1 because airlines have the flexibility to adjust the number of flights and seats available over such a long time horizon, making supply highly responsive to changes in price.

The Elasticity of Supply for Airplane Travel One Year in Advance