If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel, A airlines would charge the same price to each type of yer B airlines would still charge business yers a higher fare since the traveler's employer pays anyway C airlines would be driven out of business D airlines would counter by charging vacationers a higher fare

Question

Ruben Medina

Business

1 January, 05:30

If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel, A airlines would charge the same price to each type of yer B airlines would still charge business yers a higher fare since the traveler's employer pays anyway C airlines would be driven out of business D airlines would counter by charging vacationers a higher fare

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Answers (1)

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Humberto Villa · Answer 1

Option "B" is correct

Explanation:

The increase in the airline of business years with bring about uniformity of price elasticity between them and vacationers.