If students' expenditures on airline travel increase as a consequence of more heavily discounted fares, students' demand for airline travel must be:

CA Foundation · Business Economics · MTP · January 2025
If students' expenditures on airline travel increase as a consequence of more heavily discounted fares, students' demand for airline travel must be:
(A) A. income elastic.
(B) B. income inelastic.
(C) C. price elastic.
(D) D. price inelastic

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. price inelastic

Topics: Public Finance

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