Final answer:
The demand for leisure air travel is more elastic, with a price elasticity of -1.60, compared to business air travel's inelastic demand, with a price elasticity of -0.80.
Step-by-step explanation:
The price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in its price. When discussing the elasticity of demand for different types of air travel, such as business air travel and leisure air travel, the elasticity can vary significantly.
The price elasticity of demand for business air travel, given as -0.80, is inelastic, indicating that a 1 percent increase in price leads to less than a 1 percent change in the quantity demanded. On the other hand, the price elasticity of demand for leisure air travel, given as -1.60, is more elastic.
This difference suggests that the demand for leisure air travel is more sensitive to price changes than the demand for business air travel.