The price elasticity of demand for air travel differs radically from first-class (1.3) to unrestricted coach (1.4)

Question:

The price elasticity of demand for air travel differs radically from first-class (−1.3) to unrestricted coach (−1.4) to restricted discount coach (−1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial economics applications strategy and tactics

ISBN: 978-1439079232

12th Edition

Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris

Question Posted: