Airlines often charge customers more if they don't stay over at their destination on a Saturday night. The best explanation for this is that the airline is engaging in:
A) predatory pricing.
B) arbitrage.
C) price discrimination.
D) perfect competition.

Question

Quizplus · Accepted Answer

This practice is an example of price discrimination, in which the airline is charging different prices to different customers for the same product or service. By offering a lower fare to customers who stay over the weekend, the airline can attract more leisure travelers who are willing to spend more time at their destination. Business travelers, who typically travel during the week and don't stay over on weekends, end up paying a higher fare.

Airlines Often Charge Customers More If They Don't Stay Over