Suppose an Airline Determines That Its Customers Traveling for Business

question 196

Multiple Choice

Suppose an airline determines that its customers traveling for business have inelastic demand and its customers traveling for vacations have an elastic demand.If the airline's objective is to increase total revenue,it should

• A)increase the price charged to vacationers and decrease the price charged to business travelers.
• B)decrease the price charged to vacationers and increase the price charged to business travelers.
• C)decrease the price to both groups of customers.
• D)increase the price for both groups of customers.

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Definitions:

Religious Institutions

Organizations or establishments founded on religious beliefs and practices, serving the spiritual needs of their community and often playing significant social and educational roles.

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution, ratified in 1868, granted citizenship to all persons born or naturalized in the United States, including formerly enslaved people, and provided all citizens with “equal protection under the laws.”

Due Process Clause

Constitutional guarantees that provide individuals the right to fair governmental procedures and trials.

Double Jeopardy Clause

A provision of the Fifth Amendment to the U.S. Constitution that protects individuals from being tried twice for the same offense in the same jurisdiction.