(Answered) Question with higher fuel costs airlines raised their

Economics

Question: With higher fuel costs, airlines raised their average fare from 75¢ to $1.25 per passenger kilometre and the number of passenger kilometres decreased from 2.5 million a day to 1.5 million a day.

a. What is the price elasticity of demand for air travel over this price range?

b. Describe the demand for air travel.

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Microeconomics, Economics

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