The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller.The airlines base the policy on the assumption that
A)consumers are not aware of airline prices.
B)consumer demand is unrelated to prices.
C)consumer demand becomes more elastic as departure time approaches.
D)consumer demand becomes less elastic as departure time approaches.

Question

Quizplus · Accepted Answer

The statement implies that consumers tend to have a more urgent need to travel as their departure time approaches, meaning that they are less likely to be deterred by price increases. This suggests that demand becomes less elastic as the departure time approaches, making option D the correct answer. Options A and B are incorrect, as they assume that consumers are not influenced by prices at all, which is not true. Option C is also incorrect, as it suggests that demand becomes more elastic as the departure time approaches, which contradicts the statement.

The Price of an Airline Ticket Rises as the Amount