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

question 330

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 additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $300 per ticket?

• A)$10,000
• B)$15,000
• C)$30,000
• D)$45,000

Identify the circumstances under which a contract can be rescinded or set aside.

Recognize the difference between void and voidable contracts.

Grasp the implications of mutual mistake and its effect on contract validity.

Understand the role of independent legal advice in preventing undue influence claims.

---

Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and a potential say in company decisions.

Cash

Liquid currency or assets that can be immediately used to make transactions or settle debts.

Day-to-day Expenses

Regular and routine expenses that are necessary for the daily operations of an individual or organization, such as groceries or office supplies.

Major Purpose

The primary reason or objective behind an action, strategy, or existence of an entity or project.