With higher fuel costs,airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day.What is the price elasticity of demand for air travel when the price is $1 per passenger kilometre?
A)2
B)0.75
C)1.33
D)50
E)0.5

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The Answer of With higher fuel costs,airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day.What is the price elasticity of demand for air travel when the price is $1 per passenger kilometre?
A)2
B)0.75
C)1.33
D)50
E)0.5

With Higher Fuel Costs,airlines Raise Their Average Fare from $0