When airlines offer lower fares to passengers who stay over a Saturday night, compared to regular fares, is an example of
A)vacation airfares.
B)market pricing.
C)collusion.
D)price discrimination.

Question

Quizplus · Accepted Answer

This is an example of price discrimination as the airline is charging different prices for the same service based on the customer's willingness to pay. By offering a lower fare for customers who stay over a Saturday night, the airline is trying to price discriminate, and charge more to business travelers who have to return before the weekend.

When Airlines Offer Lower Fares to Passengers Who Stay Over