Suppose There Is Only One Airline That Travels from One

Suppose there is only one airline that travels from one island to another. Assume that business travellers have a low elasticity of demand for air travel. Holiday travellers on the other hand are flexible and are sensitive to price. Price discrimination can occur because:

A) business travellers have to travel.
B) there is a monopoly.
C) of the difference between price elasticities.
D) there are no close substitutes.

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