Airline companies engage in price discrimination by

Question

Quizplus · Accepted Answer

Charging higher prices to customers who must travel on short notice is a form of price discrimination called dynamic pricing. This is because the airline companies know that these customers may have limited options and are willing to pay more for last-minute travel. Choice A is incorrect because unrestricted fares do not necessarily involve price discrimination. Choice B is incorrect because a temporary price cut is a form of promotional pricing, not price discrimination. Choice D is incorrect because price-fixing is an illegal practice where companies collude to set prices at a certain level.

Airline Companies Engage in Price Discrimination by