Demand elasticities measure the change in the quantity demanded of a particular good
or service as a result of changes to other economic variables, such as its own price, the
price of competing or complementary goods and services, income levels and taxes. They
provide a key insight into the proportional impact of different economic actions and
policy decisions.
This report estimates the demand elasticity of air travel under various scenarios and
locations. It focuses on three main types of demand elasticity