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:

Experimental Group

The group in an experiment that receives the treatment or intervention, used to assess the treatment's effect.

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is used as a benchmark to measure how the other tested subjects do.

Correlational Studies

A type of non-experimental research method in which a researcher measures two variables, understands and assesses the statistical relationship between them without any causal assumption.

Cause-and-Effect

A relationship where one event (the cause) makes another event happen (the effect).