ice. A high price elasticity of demand may indicate, in some instances, that a firm or industry could maximize its revenues by lowering prices. Alternatively, however, it may also indicate that a firm or industry is in a competitive situation from which they may not be able to recover. Air express transportation is characterized by a relatively high price elasticity of demand. Thus, relatively small price changes may be expected to have a significant impact on demand for air express transportation (Adrangi, Chow, & Raffiee, 1996).
With a tendency toward chronic excess capacity and a relatively high p
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