Once Prices Are Established, Airfares Are Broadcast to All Participating

question 14

Multiple Choice

Once prices are established, airfares are broadcast to all participating airline _____________, which feed data to travel websites and agencies.

• A) Global distribution systems
• B) Computer reservation systems
• C) Revenue managements
• D) A & B
• E) A & C

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Definitions:

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The Output Effect describes how changes in price levels affect the quantity of goods and services produced in an economy, influencing overall economic output.

Substitute Resources

Alternative means or materials that can be used to achieve the same function or production goal in the absence of preferred resources.

Price of Capital

The cost of using capital assets for production, including interest rates on loans or opportunity costs of using own capital.