Airlines now charge passengers for checking luggage, and for food and blankets in flight. Airlines must have determined that demand for these items is

Question

Quizplus · Accepted Answer

The fact that airlines are charging passengers for these items suggests that demand for them is inelastic. This means that even with an increase in price, consumers still have a relatively high demand for the item (in this case, checking luggage or buying food/blankets on the plane) and are willing to pay the higher price. If demand were elastic, consumers would be more likely to cut back on purchasing these items in response to the higher prices.

Airlines Now Charge Passengers for Checking Luggage, and for Food