Which of the Following Best Explains Why People Booking Airline

question 34

Multiple Choice

Which of the following best explains why people booking airline tickets just prior to their departure dates tend to pay a higher price than those that book a long time in advance?

• A) Individuals booking tickets just a few days in advance tend to have a lower opportunity cost of their time.
• B) Individuals booking tickets just a few days in advance tend to have a more inelastic demand for airline tickets.
• C) Individuals that book tickets a long time in advance tend to have a lower demand for airline tickets.
• D) Individuals booking tickets just a few days in advance tend to be businessmen whose firms are paying for their tickets so they are not concerned about the price.

---

Definitions:

Slope Coefficient

In linear regression, a measure of the rate of change in the dependent variable for every one unit change in an independent variable.

Average Change

The mean difference between successive measurements in a series of data points, indicative of a trend or variation over time.

Independent Variable

A variable in an experiment or study that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

The variable in a study or experiment that is expected to change as a result of variations in the predictor variables.