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Darla Is Surprised to Find That the Quality of In-Flight

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Essay

Darla is surprised to find that the quality of in-flight service remains much the same despite a steep hike in air-fares recently. What could be wrong in her assumption that a higher price naturally translates into better quality?


Definitions:

Spot Price

The present selling price of a specific asset, such as a commodity, currency, or security, available for instant purchase or sale.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.

T-bond Futures

Futures contracts that are based on the price movements and yield of U.S. Treasury bonds.

Stock-index Futures

Futures contracts based on stock indices, which allow investors to buy or sell the future performance of a stock market index.

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