Think about price elasticity. In a recent fare war, American Airlines reduced the price of its roundtrip airfare from Toronto to New York City from $198 to $138 to match Delta Airlines. American matched the fare reluctantly, saying it would cost the company millions of dollars in revenue for those tickets to be sold for less. Delta, on the other hand, believed the fare cut would increase its revenue even if rival airlines matched the lower fares. What assumptions about the price elasticity of demand for airline tickets on that route did each airline believe was true based on the information presented?