The elasticity of supply for airplane travel one day 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 day in advance of the departure date is likely to be between zero and 1 because in the short run, airlines can only adjust the number of flights by a limited amount, so the quantity supplied is not very responsive to changes in price. Additionally, airlines cannot easily add new airplanes to their fleet or expand their capacity in the short term, so the supply curve is relatively inelastic.

The Elasticity of Supply for Airplane Travel One Day in Advance