If Somebody Posing as a Vacationer Were Able to Purchase

question 42

Multiple Choice

If somebody posing as a vacationer were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,

• A) group price discrimination on the part of airlines would no longer be profitable.
• B) group price discrimination on the part of airlines would no longer be profit maximizing.
• C) the airlines would respond by raising further the price charged to business flyers.
• D) this person would not earn any economic profit.