Sometimes airlines raise ticket prices as the flight departure date approaches in the hope of increasing revenue on the assumption that consumer demand is:
A) more price-elastic as departure time approaches.
B) less price-elastic as departure time approaches.
C) always unit elastic.
D) very sensitive to price changes as the time of departure approaches.

Question

Quizplus · Accepted Answer

As the departure date approaches, consumers are often less sensitive to price changes because they have fewer alternatives and may need to travel urgently, making demand less price-elastic.

Sometimes Airlines Raise Ticket Prices as the Flight Departure Date