1. What effect, if any, does each of the following events have on the price elasticity of demand for corporate-owned jets?

a)A decline in corporate earnings causes firms to cut their travel budgets, which in turn causes expenditures on corporate jet travel to become a larger fraction of total spending on corporate travel.

b)A new, much more fuel-efficient corporate jet is introduced.

c)Further deregulation of the commercial airlines industry substantially increases the variety of departure times and destinations offered by commercial airlines.

d)The cost of manufacturing corporate jets rises.