Why Do Airlines Limit the Number of Cheap Fares as Compared

question 7

Multiple Choice

Why do airlines limit the number of cheap fares as compared with more expensive fares?

• A) Raises profit.
• B) Limits cannibalization of more expensive fares.
• C) Reduces the marginal cost.
• D) All of the above.

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Definitions:

Neural Impulses

Electrical signals that travel along neurons, transmitting messages throughout the nervous system.

Sympathetic System

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate, dilating airways, and mobilizing energy.

Reuptake

The process by which neurotransmitters are taken back into the neurotransmitter vesicles in the nerve cells after they have been released.

Serotonin

A neurotransmitter associated with mood regulation, digestion, sleep, and other bodily functions, playing a key role in preventing depression and regulating anxiety.