The price elasticity of demand for airplane travel one week in advance of the departure date is most likely to be
A)equal to infinity.
B)equal to zero.
C)between zero and 1.
D)equal to 1.
E)greater than 1.

Question

Quizplus · Accepted Answer

The price elasticity of demand for airplane travel one week in advance is likely to be inelastic (between zero and 1) because travelers have fewer alternatives and are less sensitive to price changes close to the departure date.

The Price Elasticity of Demand for Airplane Travel One Week