When Airlines Charge Different Fares for Seats on the Same

question 4

Multiple Choice

When airlines charge different fares for seats on the same flight depending on how far in advance an airline ticket has been purchased,it is using a(n) _____ strategy.

• A)dumping
• B)block pricing
• C)first-degree price discrimination
• D)intertemporal price discrimination

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, in a given time period.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

Price Decreases

Refers to a reduction in the price of goods or services, often due to supply and demand factors.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, intended to protect consumers from high prices.