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) elastic; elastic
B) elastic; inelastic
C) inelastic; elastic
D) inelastic; inelastic

Question

Quizplus · Accepted Answer

In the short run, the price elasticity of demand is 0.52, which is less than 1, indicating inelastic demand. In the long run, the elasticity is 1.46, which is greater than 1, indicating elastic demand.

If the Price Elasticity of Demand for Airline Travel Is