Buy custom The Effect of Price Elasticity of Demand in Airline Industry
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1141 |
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Meanwhile, short-haul business comes second at -0.7, which is also price inelastic. Short-haul leisure segment has the greatest absolute value of price elasticity, which means that passenger turnout is heavily influenced by pricing mechanism. In general, long-haul flight is less elastic than short-haul flight, while business sector is less elastic than leisure sector...
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The results are not difficult to be explained by empirical evidence. Since more alternatives become available for substituting short-haul flight than long-haul flight, passengers are more likely to switch to substitutes including automobiles, trains and boats if the price of an airline ticket increases...
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General points of the essay
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