Air fares are generally lower on Tuesdays and Wednesdays each week.What is a likely explanation for this occurrence?
A)Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price.
B)Demand is relatively variable, and lower supply leads to a lower equilibrium price.
C)Lower levels of both supply and demand on these days lead to a lower equilibrium price.
D)Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price.
E)Demand is relatively fixed, and lower supply leads to a lower equilibrium price.

Question

Quizplus · Accepted Answer

Air travel demand tends to be lower on Tuesdays and Wednesdays, as these days are in the middle of the workweek and less popular for travel. Airlines have a relatively fixed number of flights they can offer due to logistical and regulatory constraints, so when demand drops, they lower prices to fill seats, leading to lower airfares.

Air Fares Are Generally Lower on Tuesdays and Wednesdays Each