A Major Benefit of the Hub and Spoke System Adopted

question 49

Multiple Choice

A major benefit of the hub and spoke system adopted by major U.S. airlines is:

• A)airlines can service more cities at a lower cost
• B)airlines can save marketing costs
• C)airlines can expand employee hiring
• D)airlines have more control over which passengers select their services

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Definitions:

Ceteris Paribus

A Latin term meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding all other factors constant.

Demand Curve

It represents the relationship between the price of a good or service and the quantity demanded by consumers over a certain period of time.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price.

Price

The amount of funds needed to purchase a commodity, service, or asset.