An airline finds that its 6 A.M. flights are half-empty but the mid-afternoon flights are full. Which would be the MOST plausible statement for an economist to make?
A) Cut the price of the early morning flight and raise the price of the afternoon flight.
B) Nothing can be done to rectify the situation because of consumer sovereignty.
C) Fewer flights should be scheduled in the afternoon to force travelers to take the morning flight.
D) Nothing can be done because travelers are inflexible with their schedules.

Question

Quizplus · Accepted Answer

By cutting the price of the early morning flight, the airline can increase demand for those flights. Raising the price of the afternoon flight can capitalize on its high demand, optimizing revenue.

An Airline Finds That Its 6 A