Airlines price discriminate by offering both business-class and economy-class service on flights (it's not just the cost of the service that varies; the markup is higher on business class). If they wanted to ensure that everyone who could afford to travel business class did so, what might they do?
A) lower the price of traveling economy class
B) make the seats in business class extra small and cramped, and serve terrible food
C) make the seats in economy class extra small and cramped, and serve terrible food
D) hire more attractive flight attendants for all classes

Question

Quizplus · Accepted Answer

By making economy class less comfortable, airlines can encourage those who can afford it to choose the more comfortable business class, thus maximizing revenue from those willing to pay more.

Airlines Price Discriminate by Offering Both Business-Class and Economy-Class Service