When we look at factors affecting tourism demand, we need to consider types of income. Tourism is most dependent on what type of income? Discretionary income High level of income Disposable income Credit card access
Added by Jose Antonio B.
Close
Step 1
The question asks about the type of income that tourism is most dependent on, in the context of factors affecting tourism demand. Show more…
Show all steps
Your feedback will help us improve your experience
Akash M and 99 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
What economic factors influence the success of the international cruise industry? Explain how each affects such success.
Akash M.
Match the descriptions to economic and non-economic factors that affect a business cycle. leisure has reached an all-time high there has been a sudden decreasein consumer spending in the country there is political unrest in the country that provides raw material to a business business has allocated funds for capital investments banks have reduced the interest rates
James K.
Table 1 and Table 2 show the price and income elasticities of demand, respectively, for selected air travel markets. Table 1: Estimated Price Elasticities of Passenger Demand Route/Market level National level Supra-national level Short-haul Long-haul Short-haul Long-haul Intra N America -0.9 -0.8 -0.7 -0.6 Intra Europe -1.2 -1.1 -0.9 -0.8 Intra Asia -0.8 -0.8 -0.6 -0.6 Intra Sub-Saharan Africa -0.5 -0.5 -0.4 -0.4 Intra S America -1.1 -1.0 -0.8 -0.8 Trans-Atlantic -1.1 -1.0 -0.8 -0.7 Trans-Pacific -0.5 -0.5 -0.4 -0.4 Europe-Asia -0.8 -0.7 -0.6 -0.5 Source: IATA Table 2: Estimated Income Elasticities of Passenger Demand Route / Market level Short-haul Medium-haul Long-haul Very long-haul US 1.8 1.9 2.0 2.2 Developed economies 1.5 1.6 1.7 2.4 Developing economies 2.0 2.0 2.2 2.7 National level Short-haul Medium-haul Long-haul Very long-haul US 1.6 1.7 1.8 2.0 Developed economies 1.3 1.4 1.5 2.2 Developing economies 1.8 1.8 2.0 2.5 Source: IATA a) Using the information presented in the above tables, explain how the concepts of price and income elasticity of demand can assist airline managers to increase revenues of their business and maximize profits.
Crystal W.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD