Which of the Following Best Explains Why People Booking Airline

question 34

Multiple Choice

Which of the following best explains why people booking airline tickets just prior to their departure dates tend to pay a higher price than those that book a long time in advance?

• A) Individuals booking tickets just a few days in advance tend to have a lower opportunity cost of their time.
• B) Individuals booking tickets just a few days in advance tend to have a more inelastic demand for airline tickets.
• C) Individuals that book tickets a long time in advance tend to have a lower demand for airline tickets.
• D) Individuals booking tickets just a few days in advance tend to be businessmen whose firms are paying for their tickets so they are not concerned about the price.

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Definitions:

IASB

Stands for International Accounting Standards Board, responsible for developing International Financial Reporting Standards (IFRS).

Economic Benefits

The gains received or receivable by an entity as a result of past or future transactions or events.

Asset

A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits.

Control

The power to influence or direct the behavior of people or the course of events.