Price Floors on Airlines

question 110

Multiple Choice

Price floors on airlines:

• A) kept ticket prices much lower than unregulated ticket prices.
• B) caused airlines to compete by offering customers higher-quality services, such as better meals and wider seats.
• C) reduced the quality of airline services (for example, less frequent flights, peanuts instead of meals).
• D) gave airlines an incentive to lower ticket prices to increase ticket sales.

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Definitions:

Attributing

The process of explaining the cause of behaviors or events, often associating them with particular factors or motives.

Halo Effect

The rating of an individual on one trait or characteristic tends to colour ratings on other traits or characteristics.

Stereotype

A fixed, oversimplified, and often inaccurate assumption or generalization about a particular group of people or thing.

Recency Effect

The tendency to remember and give greater importance to the most recent information or experiences when making decisions or judgments.