January 28, 2005
Quiz Time
CNN reports:
Security fee on plane tickets may double
The response:
Debby McElroy, president of the Regional Airline Association, criticized the proposal as taxing an industry that already carries one of the highest tax burdens.
"This could put further pressure on airline revenues at a time when many carriers are struggling for their very survival," McElroy said.
Question a la Kling: Taking Ms. McElroy's statement at face value, what is the incidence of the ticket tax and what does it suggest about the elasticity of demand for tickets?
Posted by E. Frank Stephenson at 06:25 PM
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