Airlines That Try to Lower Fares in Order to Increase

question 54

Multiple Choice

Airlines that try to lower fares in order to increase revenue must believe that the demand for airline service is

• A)price inelastic.
• B)income elastic.
• C)income inelastic.
• D)price elastic.
• E)cross-price elastic.

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Definitions:

Demographic

Relating to the statistical characteristics of human populations, such as age, race, gender, and income, used especially for identifying consumer markets.

Individual-level Variables

Factors or characteristics that pertain to, or can be measured at, the level of the individual person.

Matrimony

The state of being married, also referred to as the institution of marriage.

Civil Unions

A legally recognized union of a couple, similar to marriage, which provides some but not all the rights and responsibilities of marriage under the law.