The Price of an Airline Ticket Rises as the Amount

question 145

Multiple Choice

The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that

• A) consumers are not aware of airline prices.
• B) consumer demand is unrelated to prices.
• C) consumer demand becomes more elastic as departure time approaches.
• D) consumer demand becomes more inelastic as departure time approaches.

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Definitions:

Diffusion

The process of spread of particles from regions of higher concentration to regions of lower concentration.

Ventilation

The process of supplying fresh air and removing stale air from a space, or medically, the movement of air into and out of the lungs.

Respiratory Syncytial Virus (RSV)

A common respiratory virus that causes infections of the lungs and respiratory tract, especially serious in infants and the elderly.

Premature Infant

An infant born before completing the usual 37 weeks of gestation, often requiring special medical care due to underdeveloped organs.