With higher fuel costs, airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day. Over this price range, the price elasticity of demand is
A)2.
B)0.18.
C)5.6.
D)50.
E)0.5.

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The Answer of With higher fuel costs, airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day. Over this price range, the price elasticity of demand is
A)2.
B)0.18.
C)5.6.
D)50.
E)0.5.

With Higher Fuel Costs, Airlines Raise Their Average Fare from $0.50