mweiss said:How about you play Nicholson? :huh:
[post="256549"][/post]
You contend that Airline travel (specifically leisure) demand is elastic in all ranges. That's nonsensical. Saying that the price elasticity of demand for leisure travel is elastic is by definition saying that an X percent decrease in fares would result in a LARGER increase in demand, thus raising revenue. you statement that that is true for ALL ticket price ranges would imply that it is your belief that if fares were $2.00 for a transcon flight, lowering the price to $1.00 would double demand. not plausible. You may think we are not yet in a region of elastic demand, but to contend there is none is ludicrous.