If the price elasticity of demand for airline travel is 0.52 in the short run and 1.46 in the long run, then the demand for airline travel is _______ in the short run and _______ in the long run.
A) inelastic; elastic
B) inelastic; inelastic
C) elastic; elastic
D) elastic; inelastic

Question

Quizplus · Accepted Answer

The demand for airline travel is inelastic in the short run because the elasticity is less than 1 (0.52) and elastic in the long run because the elasticity is greater than 1 (1.46).

If the Price Elasticity of Demand for Airline Travel Is