Round-trip airline tickets are usually cheaper if you stay over a Saturday night before you fly back.What is the reason for this price discrepancy?
A)airlines are attempting to charge people based on their willingness to pay
B)airlines are practicing imperfect price discrimination to raise their profits
C)airlines charge a different rate based on the different nature of peoples' travel needs
D)all of the above are true

Question

Quizplus · Accepted Answer

The price discrepancy for round-trip airline tickets that require a Saturday night stay is a result of airlines' strategies to segment the market based on travelers' willingness to pay and the nature of their travel needs. This approach allows airlines to practice imperfect price discrimination, aiming to maximize profits by charging different prices to different types of travelers (e.g., business vs. leisure travelers).

Round-Trip Airline Tickets Are Usually Cheaper If You Stay Over