When airlines charge different fares for seats on the same flight depending on how far in advance an airline ticket has been purchased,it is using a(n)_____ strategy.
A)dumping
B)block pricing
C)first-degree price discrimination
D)intertemporal price discrimination

Question

Quizplus · Accepted Answer

Intertemporal price discrimination involves charging different prices for the same product depending on the timing of the purchase. In this case, the airline is charging different prices for seats on the same flight depending on how far in advance the ticket is purchased, which fits the definition of intertemporal price discrimination. Dumping refers to selling a product at a very low price in another country to gain market share, block pricing involves charging different prices for different blocks of a product or service, and first-degree price discrimination involves charging different prices for each individual unit sold.

When Airlines Charge Different Fares for Seats on the Same