ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which one of the following best describes the relationship between the demand for air travel and the demand for airline pilots? technical and marketing economies of scale.

Detailed explanation-2: -Income per capita, ticket prices, industrial production index, inflation and exchange rate have been accepted as the factors affecting aviation demand.

Detailed explanation-3: -Answer and Explanation: The demand for airline flights is elastic when the date of travel is far. This elasticity decreases as the date of travel comes closer and the demand is very inelastic a few days before the travel date. The demand is relatively less elastic for window seats than the aisle and middle seats.

Detailed explanation-4: -It is presumed that the changes in price are small. If the price elasticity of demand is not greater (more negative) than-1, a drop in price can actually reduce overall revenue received by the seller. Airline industry observers have generally assumed that the demand for airline travel is price elastic.

Detailed explanation-5: -According to the U.S. Bureau of Labor Statistics, airline and commercial pilots’ employment should grow 13% between 2020 and 2030, quicker than the average for all occupations. About 14, 700 openings for airline and commercial pilots are projected each year over the decade.