Consider an Airline Using Uniform Pricing

question 18

Multiple Choice

Consider an airline using uniform pricing. How should it adjust its pricing as the demand for air travel become more inelastic in the weeks leading up to Thanksgiving?

• A) Raise the incremental margin percentage.
• B) Raise the price.
• C) Raise the marginal cost.
• D) All of the above.

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Definitions:

Meta-Analysis

A statistical technique that combines the results of multiple studies to determine overall trends.

Significance Testing

A statistical method used to determine if the results of a study are likely to be true, or if they occurred by chance.

Cross-Sectional Research

A research method that involves analyzing data from a population, or a representative subset, at a specific point in time.

Theory

A well-substantiated explanation of some aspect of the natural world that is acquired through the scientific method and repeatedly tested and confirmed through observation and experimentation.