The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that Group of answer choices

The airlines base the policy on the assumption that the consumer demand is less elastic as time of departure approaches.

Explanation:

Price Elasticity of Demand refers to price sensitivity; i.e. the rate at price changes with demand.

As the purchase and flight departure gets smaller, the arrival rate of the passengers will definitely change.

When the demand of a commodity is less elastic, then it will cause a large changes in price of that commodity to effect a change in quantity consumed.

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