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1. Airlines charge lower fares to flyers who make a Saturday night stopover, or who make flight reservations at least two weeks in advance. They charge even lower fares to standby passengers. Explain how these pricing policies relate to elasticity of demand.

2. Some stores give senior discounts and student discounts. Do these pricing policies relate to elasticity of demand in the same way that that the airline pricing policies above do? 

Reference no: EM13988605

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