Bargain airline fares in which airlines charge varying rates to passengers for the same flight and service is an example of
A)market penetration.
B)transaction pricing.
C)collusion.
D)price discrimination.

Question

Quizplus · Accepted Answer

Bargain airline fares charging varying rates to passengers for the same flight and service is an example of price discrimination. Price discrimination refers to charging different prices to different customers for the same product or service. In this case, the airline is charging lower fares to price-sensitive customers while charging higher fares to less price-sensitive customers.

Bargain Airline Fares in Which Airlines Charge Varying Rates to Passengers