The price elasticity of demand for pleasure travel (-1.9)and business travel (-0.8)suggests that air travel for pleasure is a luxury and air travel for business is a necessity.

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The price elasticity of demand measures the responsiveness of the quantity demanded of a good or service to a change in its price. A higher absolute value of price elasticity indicates that consumers are more responsive to changes in price. In this case, the fact that the price elasticity for pleasure travel (-1.9) is higher than the price elasticity for business travel (-0.8) means that pleasure travel is more sensitive to changes in price than business travel. This suggests that air travel for pleasure is a luxury (people are more likely to reduce their demand when the price increases) and air travel for business is a necessity (people are less likely to reduce their demand when the price increases).

The Price Elasticity of Demand for Pleasure Travel (-1