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Airlines face high elasticity because there are very close substitutes and consumers almost always pick the flight that is cheaper. Airlines will lower prices during
Airlines face high elasticity because there are very close substitutes and consumers almost always pick the flight that is cheaper. Airlines will lower prices during off-peak season and during peak seasons, prices are raised, off-peak season with their lower prices attract more customers. Business class costs more, because it is a need to travel for business, whereas coach is priced lower
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