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Social Studies, 07.04.2021 21:50 sswaqqin

Flighty Forsure, world traveler, says if the airlines want to attract more passengers, they should lower fares for business travelers as well as for vacationers. What is the economist’s view of this policy position? A. A Great Idea!
B. Wrong! Vacationer’s demand for plane tickets is inelastic so the price should be decreased.
C. Wrong! Business traveler’s demand for plane tickets is inelastic so the price should be increased.
D. When price is dropped for an inelastic product, TR rise.

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