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Sagot :
The economist’s view about the policy is : Wrong! Business traveler’s demand for plane tickets is inelastic so the price should be increased.
Inelaticity in demand
In the world of economics, the demand of a service or goods does not change even if price of that service or goods changes.
When the price increases, the buying habits of the consumer remains same, and also the buying habit or demand do not change when the price falls.
Thus in the context, lowering the fares of business travelers and vacationers will not change buying habits of the plane tickets of the people.
People will travel and will buy plane tickets even if the prices are not lowered.
Learn more about "economics" here :
https://brainly.com/question/25745683
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