Question: We mentioned that airlines charge much more for flights booked at the last minute than for flights booked well in advance, even for exactly the same flight. This is because people who tend to book at the last minute tend to have inelastic demand. Think of other characteristics that airlines use to vary their pricing: Do you think these characteristics are correlated with business travel or any other sort of inelastic demand? (If you don't fly too often, just ask someone who does: "What's the key to getting the lowest possible airfare?")