The long-run demand curve for air travel is likely to be:
A)more elastic than the short-run demand curve for air travel.
B)more inelastic than the short-run demand curve for air travel.
C)the same as the short-run demand curve for air travel.
D)more inelastic than the short-run supply curve of air travel.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

In the long run, consumers and businesses have more flexibility to adjust their behavior and alternatives to air travel may become more feasible (such as video conferencing or alternative modes of transportation). Therefore, the long-run demand curve for air travel is likely to be more elastic (responsive to changes in price) than the short-run demand curve.

The Long-Run Demand Curve for Air Travel Is Likely to Be