Airline companies engage in price discrimination by
A)Charging unrestricted fares.
B)Giving a temporary price cut.
C)Charging business customers higher prices than vacation travelers.

Question

Quizplus · Accepted Answer

Airline companies often charge higher prices for the same ticket depending on the type of customer. For example, business travelers may be willing to pay more for a flexible schedule or amenities like priority boarding and more legroom, while vacation travelers may prioritize lower prices. This practice is a form of price discrimination. While airlines may also offer temporary price cuts to incentivize ticket sales, offering unrestricted fares (i.e. one price for all customers) would not allow them to maximize profits by charging higher prices to customers willing to pay more.

Airline Companies Engage in Price Discrimination by