Airfares Are Generally Cheaper If They Include a Saturday Night

question 199

Multiple Choice

Airfares are generally cheaper if they include a Saturday night stay at the destination. This is because

• A) hotels give the airlines kickbacks to price this way.
• B) business travelers are less likely than leisure travelers to be willing to stay Saturday night away from home, and business travelers will generally have more inelastic demand for air travel.
• C) business travelers are less likely than leisure travelers to be willing to stay Saturday night away from home, and business travelers will generally have more elastic demand for air travel.
• D) this reduces the demand for travel on Saturdays, which is a high-cost day to fly airplanes.

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