Many travelers that must fly for business have a service that purchases their tickets. Regardless of the time of year, when they must travel for a meeting, they do. As such, business travelers' demand for airline flights is relatively _____, and large increases in price will result in relatively _____ decreases in additional business travelers.
A)insensitive to price; small
B)sensitive to price; large
C)insensitive to price; large
D)sensitive to price; small

Question

Quizplus · Accepted Answer

Business travelers, especially those whose tickets are purchased by their company, are typically less sensitive to price changes. Therefore, their demand for airline flights is relatively insensitive to price, and even large increases in price will result in only small decreases in additional business travelers.

Many Travelers That Must Fly for Business Have a Service