Is a business person's demand for air travel likely to be relatively elastic or inelastic? Is...
- Is a business person's demand for air travel likely to be relatively elastic or inelastic? Is a vacationer's demand for air travel likely to be relatively elastic or inelastic?
- What other factors related to pricing are most important to JetBlue's management when making pricing decisions?
Homework Answers
A business person's demand for air travel is likely to be relatively inelastic in nature , this is because being a business person travelling sometimes becomes most important aspect of some businesses . In such cases a business person always prefers to take such a communication system which saves maximum time . In this case air travel becomes a necessity .
A vacationer's demand for air travel is likely to be very elastic in nature . Vacation is not a necessity , its a luxury or pleasurable activity . So in such cases the demand is very price sensitive .
When making pricing decisions , apart from elasticity , price of competitors , income of consumers , the fuel cost etc are important factors .
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Is a business person's demand for air travel likely to be
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