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

question 330

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 additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $300 per ticket?

• A)$10,000
• B)$15,000
• C)$30,000
• D)$45,000

---

Definitions:

Ambiguities

Uncertainties or doubts in the meaning or interpretation of words, phrases, or legal provisions.

Drafted Agreement

A preliminary version of a contract or legal agreement that is subject to discussions, revisions, and finalization.

Collateral Contract

A secondary agreement that enhances a primary contract or adds additional terms, and whose breach may provide grounds for legal action separate from the main contract's terms.

Mortgage

A conveyance of property to secure the performance of some obligation, the conveyance to be void on the due performance thereof.