If the Price Elasticity of Demand for Airline Tickets Is

question 140

Multiple Choice

If the price elasticity of demand for airline tickets is 2.0 for a leisure traveler and 0.5 for a business traveler, then a price-discriminating monopolist would charge

• A) a higher price for the business traveler than the leisure traveler.
• B) the same price for both travelers.
• C) a lower price for the business traveler than the leisure traveler.
• D) a less profitable price for the business traveler than the leisure traveler.

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Definitions:

Denial

A defense mechanism in which an individual refuses to accept reality or facts, blocking external events from awareness.

Displacement

A defense mechanism where an individual redirects emotional feelings from a threatening target to a less threatening one.

Rationalization

The cognitive process of logically justifying behaviors, decisions, or beliefs that might otherwise be unacceptable or irrational.

Rejection

The act of being dismissed or refused acceptance, love, recognition, or acknowledgment by others.