Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 101

Multiple Choice

Scenario 15-5
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
-Refer to Scenario 15-5. How much profit will the airline earn if it sets the price of each ticket at $600?

• A)-$5,000
• B)$15,000
• C)$40,000
• D)$60,000

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Definitions:

Income

The money received, typically on a regular basis, for work or through investments.

Budget Constraint

Represents the combinations of goods and services that a consumer can afford to buy with their limited income.

Black Bean

A type of legume that is dense in nutrition, widely consumed around the world, often in salads, soups, and traditional dishes.

Budget Constraint

The limitation on the purchase of goods and services that results from a given income and the prices of those goods and services.