Because business travellers' demand for airline flights is relatively _____,large increases in price will result in relatively _____ decreases in additional business travellers.

Question

Quizplus · Accepted Answer

The question is describing the concept of price elasticity of demand, which measures the responsiveness of quantity demanded to a change in price. When demand is price-inelastic, it means that changes in price have a relatively small effect on the quantity demanded. Therefore, large increases in price will result in relatively small decreases in additional business travellers. Choice A is the best answer because it correctly identifies the demand as price-inelastic and predicts a small decrease in quantity demanded.

Because Business Travellers' Demand for Airline Flights Is Relatively _____,Large