The elasticity of supply for airplane travel one day in advance of the departure date is most likely to be
A)substantially lower than -1.
B)between -1 and zero.
C)between zero and 1.
D)approximately equal to 1.
E)greater than 1.

Question

Quizplus · Accepted Answer

The elasticity of supply for airplane travel one day in advance of the departure date is likely to be between zero and 1. This is because airlines may have limited flexibility in changing the number of flights or seats available on short notice, but they may be able to make some adjustments such as assigning larger or smaller planes. Additionally, demand for travel one day in advance is likely to be relatively inelastic, which may limit the extent to which airlines can increase supply. As such, the elasticity of supply is likely to be relatively low, but still somewhat responsive to changes in price and demand.

The Elasticity of Supply for Airplane Travel One Day in Advance