If the demand for airline tickets to Fort Lauderdale is price elastic,
A)airline revenue will increase if supply increases
B)airline revenue will increase if supply decreases
C)a small change in price will cause a large shift in the demand curve
D)a large change in price will cause a small shift in the demand curve
E)a large change in price will cause a large shift in the demand curve

Question

Quizplus · Accepted Answer

If demand is price elastic, a decrease in price would lead to a larger increase in the quantity demanded, which would increase airline revenue if supply increases.

If the Demand for Airline Tickets to Fort Lauderdale Is