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Your Text Refers to Airlines as "The Kings of Price

question 143

Essay

Your text refers to airlines as "The Kings of Price Discrimination." Why is price discrimination common in the airline industry?


Definitions:

Rate

The percentage at which interest is charged on a loan or earned on an investment.

Term Deposit

A banking product where money is locked away for a certain period of time at a fixed interest rate.

Maturity

The time at which a financial instrument, investment, or insurance policy reaches its final value and the principal is repaid or returned.

Interest

The price paid for the opportunity to use borrowed finances, generally expressed through an annual percentage.

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