What are Demand Elasticities?
Chapter 3 provides definitions for different categories
of demand elasticities and discusses how each can
be interpreted. It outlines three key concepts: price
elasticity of demand, cross-price elasticity of demand
and income elasticity of demand. It also discusses key
factors that influence both the demand for air transport
and the sensitivity of this demand to changes in prices
and incomes.
How can this be applied to air travel demand?
Chapter 4 discusses the different types of demand
elasticity that can be estimated for air travel. It discusses
how the relevant demand elasticity can change in relation
to the market size and its geographical locatio