Is price elasticity modeled?

[EquinoxAirlines]

I did use search, but I couldn't find a straight answer.

Is price elasticity simulated?  If it is, is it quite an advanced model or a basic price goes up / demand drops simulation?

[Sami]

Yes, partly. You can induce more demand than showed in the graphs with low prices (or otherwise "good service") and the other way around; very high prices will scare the displayed nominal demand away.

[Hillians]

Partly is the key word in sami's reply
dont expect drastic demand changes if you drop prices 50%, instead expect red numbers on your income statement.