If a man spends approximately 45% of his income on air travel and his sister only spends about 2% of her income on air travel (and that is the only difference), would the man's demand for air travel be less or more elastic than his sister's?

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Mathematics

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10 March, 09:49

If a man spends approximately 45% of his income on air travel and his sister only spends about 2% of her income on air travel (and that is the only difference), would the man's demand for air travel be less or more elastic than his sister's?

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Brennen Robertson · Answer 1

more elastic

Step-by-step explanation:

Elastic demand responds to demand of a product or services due to increases in price. From the question, the man's demand for air travel will be more elastic than his sister's. This is because, the quantity of services purchased by the man is highly greater (45% of his income) than that of his sisters's (whose is spending just only 2%).