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:

Psychological Identification

A psychological process whereby an individual assimilates an aspect, property, or attribute of another person or group and is transformed, wholly or partially, by the model the other provides.

Organization

A structured group of people with a specific purpose or goal, often characterized by a systematic approach and formalized roles within the context of its operation.

Engagement

The emotional and cognitive connection that employees feel towards their work, often resulting in higher levels of motivation and productivity.

Gallup Organization

A global analytics and advisory firm known for its public opinion polls and research on human behavior and workplace trends.