Which of the following statements is TRUE?
A) Customers who shop for airline tickets weeks or months in advance are likely vacation travelers and thus more sensitive to ticket prices.
B) Customers who must purchase airline tickets for a flight tomorrow are likely business travelers and thus more sensitive to ticket prices.
C) Customers who must purchase airline tickets for a flight tomorrow are likely business travelers and thus have more elastic demands.
D) Customers who shop for airline tickets weeks or months in advance are likely business travelers and thus have inelastic demand.

Question

Quizplus · Accepted Answer

Customers who plan their trip weeks or months in advance are usually vacation travelers who have more flexibility in their travel plans and therefore are more sensitive to ticket prices. Business travelers, on the other hand, often have to travel on short notice and have less flexibility in their schedules, making them less sensitive to price changes.

Which of the Following Statements Is TRUE