Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 256

Multiple Choice

Scenario 15-5
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
-Refer to Scenario 15-5. How much profit will the airline earn if it engages in price discrimination?

• A)-$5,000
• B)$40,000
• C)$55,000
• D)$75,000

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Definitions:

Prejudice and Discrimination

Unfair treatment and negative attitudes directed towards individuals or groups based on their race, gender, age, or other characteristics, leading to inequality.

Middle Easterners

Individuals from the Middle East, a region that encompasses Western Asia and North Africa, known for its diverse cultures, languages, and religious practices.

Gender Roles

Social and behavioral norms that are considered appropriate for individuals of a specific gender within a cultural context.

Romantic Love

An intense feeling of deep affection and attraction toward a person with whom one wishes to have a close and intimate relationship.