The price elasticity of demand for air travel differs radically from first class -.3 to unrestricted coach (-.4) to restricted discount coach (-.9). What do these elasticities mean from optimal prices (fares) on a cross-country trip with incrementalvariable costs (marginal costs) equal to $120?The price elasticity of demand for air travel differs radically from first class -.3 to unrestricted coach(-.4) to restricted discount coach (-.9). What do these elasticities mean from optimal…
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