Asked by Farhan Malik on May 27, 2024
Verified
Airlines charge business travelers more than leisure travelers because there is a more
A) elastic supply of business travel.
B) inelastic supply of business travel.
C) elastic demand for business travel.
D) inelastic demand for business travel.
Inelastic Demand
A situation where the demand for a product does not significantly change in response to changes in its price.
Business Travel
The act of traveling for the purpose of conducting business-related activities.
- Attain insight into the principle of price elasticity concerning demand and supply.
- Differentiate the concepts of elasticity and inelasticity within market demand and supply.
- Assess the implications of price differentiation in relation to demand elasticity.
Verified Answer
MB
Makayla BanksMay 30, 2024
Final Answer :
D
Explanation :
Airlines charge business travelers more because their demand for travel is inelastic, meaning they are less sensitive to price changes due to the necessity of their travel for work purposes.
Learning Objectives
- Attain insight into the principle of price elasticity concerning demand and supply.
- Differentiate the concepts of elasticity and inelasticity within market demand and supply.
- Assess the implications of price differentiation in relation to demand elasticity.