An Airline Company

question 144

Multiple Choice

An airline company

• A) cannot price discriminate because it is against the law.
• B) price discriminates by charging higher prices to business travelers.
• C) price discriminates by charging lower prices to business travelers.
• D) price discriminates even though its profits are lower because competition forces it to do so.
• E) has fewer customers because it price discriminates than it would have if it did not price discriminate.

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Definitions:

Rate Changes

Adjustments in interest or exchange rates that impact the financial markets and economic conditions.

Zero Sum Game

A situation in which the gain of one party is exactly matched by the loss of another party, indicating that no net wealth is created or destroyed in the transaction.

Contract

A legally binding agreement between two or more parties that outlines duties, rights, and obligations.

Money

A medium of exchange that is authorized or adopted by a government as part of its currency.