The price elasticity of demand for leisure air travel is -1.60. Therefore, a
A. 16 percent decrease in the price of leisure air travel will cause a 10 percent increase in the amount of leisure air travel.
B. 10 percent decrease in the price of leisure air travel will cause a 16 percent increase in the amount of leisure air travel.
C. a 16 percent decrease in the price of leisure air travel will cause a 10 percent decrease in the amount of leisure air travel.
D. 10 percent decrease in the price of leisure air travel will cause a 16 percent decrease in the amount of leisure air travel.
Answer: B
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