Which of the following would most likely have a price elasticity coefficient greater than 1?
A)Cigarettes.
B)Gasoline in the short run.
C)Electricity.
D)Airline travel in the long run.

Question

Quizplus · Accepted Answer

Airline travel in the long run is likely to have a higher price elasticity coefficient than the other options given. This is because, in the long run, consumers have more flexibility to adjust their behavior (e.g. choosing alternative modes of transportation or altering their travel plans) in response to price changes.

Which of the Following Would Most Likely Have a Price