EasyJet Needs the Following to Justify Its Low Prices and to Break

question 42

Multiple Choice

EasyJet needs the following to justify its low prices and to break even:

• A)High load factor
• B)Higher sales
• C)Higher physical costs
• D)Only a & b
• E)All of the above

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Definitions:

Excise Tax

A tax imposed on specific goods or services at purchase such as gasoline, tobacco, and alcohol.

Highly Inelastic

Describes a situation where the demand or supply for a good or service is hardly affected when the price changes.

Highly Elastic

Describes a situation where the demand or supply of a product changes significantly in response to changes in price.

Excise Tax

A tax on the sale or consumption of specific goods or services, such as alcohol or gasoline.