An airline finds that its 6 P.M.flights are half-empty but its mid-afternoon flights are full.Which would be the MOST plausible thing for an economist to say?
A) Cut the price of the early morning flight and raise the price of the afternoon flight.
B) Nothing can be done to rectify the situation because of consumer sovereignty.
C) Fewer flights should be scheduled in the afternoon to force travelers to take the morning flight.
D) Nothing can be done because travelers are inflexible with their schedules.

Question

Quizplus · Accepted Answer

This is a case of price discrimination where the airline can charge different prices based on the time of the flight. By lowering the price of the half-empty 6 P.M. flight and raising the price of the mid-afternoon flight, the airline can attract more customers for the earlier flight and maximize profits. This strategy aligns with the economic principle of supply and demand.

An Airline Finds That Its 6 P