In 2013 american airline wa charging 2386 for round trip, Business Economics

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In 2013 american airline wa charging 2386 for round trip

In 2013, American Airline wa charging $ 2,386 for round trip, non-stop and unresticted ticket between Boston and Dallas, but the price has been cut in half to $ 1, 698. (1) What can you say about the price elassticity of business travel damand on those routes? (2) Why do you thnk the so called legacy airlines decided to establish the new fares for business traveler. What or who forces the legacy airlines to lower fares?

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