Suppose There Is Only One Airline That Travels from One

question 67

Multiple Choice

Suppose there is only one airline that travels from one island to another.Assume that business travellers have a low elasticity of demand for the air travel.Holiday travellers on the other hand are flexible and are sensitive to price.Price discrimination can occur because:

• A)business travellers have to travel.
• B)there is a monopoly.
• C)of the difference between price elasticities.
• D)there are no close substitutes.

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Definitions:

Deposit

Money placed in a financial institution for safekeeping, which can earn interest and is often used to secure transactions.

Balance

The total amount of funds in an account or the difference between the total debits and credits in an account.

Account

A record summarizing all the transactions pertaining to a single thing in the accounting world, such as a specific person, a business entity, or a specific asset.

Collection Float

The time period between when a check is deposited into a bank account and when the amount is made available.