In 1997 the federal government reinstated a ten percent


In 1997, the Federal government reinstated a ten percent excise tax on airline tickets. The industry bid to pass on the full ten percent ticket tax but was only able to boost fares by four percent. From this you can conclude that the:

A. supply of airline tickets is perfectly inelastic.

B. demand for airline tickets is perfectly inelastic.

C. supply elasticity of airline tickets is less than infinity.

D. demand elasticity for airline tickets is greater than zero in absolute value 

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Microeconomics: In 1997 the federal government reinstated a ten percent
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