Which of the following statements is true about the history of Southwest Airlines entering new markets?
A)Southwest's entry caused the demand for each carrier to become more inelastic as customers increased their loyalty to particular airlines.
B)Southwest's entry into new markets had little impact on either the markets or airlines already serving those markets.
C)Southwest's low price strategy tapped into existing elastic demand in the market, increasing the airline's revenue.
D)Southwest's highly inelastic supply made it difficult for them to take advantage of demand in the market.

Question

Quizplus · Accepted Answer

Southwest Airlines' strategy of entering new markets with low prices tapped into the existing elastic demand, meaning that as prices decreased, the quantity of demand increased, thereby increasing the airline's revenue. This approach allowed Southwest to quickly gain market share and disrupt existing competition.

Which of the Following Statements Is True About the History