If students' expenditures on airline travel increase as a consequence of more heavily discounted fares, students' demand for airline travel must be
A) income elastic.
B) income inelastic.
C) price elastic.
D) price inelastic.

Question

Quizplus · Accepted Answer

If students' expenditures on airline travel increase due to more heavily discounted fares, it indicates that the quantity demanded has increased by a proportionally larger amount than the decrease in price, which is characteristic of price elastic demand.

If Students' Expenditures on Airline Travel Increase as a Consequence