If the Demand for Air Travel Were to Change So

question 115

Multiple Choice

If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel,

• A) airlines would charge the same price to each type of flyer.
• B) airlines would still charge business flyers a higher fare since the traveler's employer pays anyway.
• C) airlines would be driven out of business.
• D) airlines would counter by charging vacationers a higher fare.

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Definitions:

Four-Component Model

A framework in moral psychology that outlines the cognitive processes involved in ethical decision-making, including moral sensitivity, judgment, motivation, and character.

Attitude

An attitude is a psychological construct that represents an individual's degree of like or dislike for an item, concept, or group, influencing behavior and perceptions.

Three-Component Model

A framework in psychology that analyses an attitude based on three distinct components: cognitive, affective, and behavioral.

Behaviour

The actions or reactions of an object or organism, often in relation to the environment or stimuli.