If increasing air fares increases revenues and decreasing them decreases revenues, then the demand for air travel has a price elasticity of:
CA Foundation · Business Economics · MTP · September 2024
If increasing air fares increases revenues and decreasing them decreases revenues, then the demand for air travel has a price elasticity of:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. > 0 but < 1
Topics: Theory of Demand and Supply
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