Airline companies engage in price discrimination by

Question

Quizplus · Accepted Answer

Airline companies often charge higher prices to business customers who need to travel on short notice and have less price sensitivity. Vacation travelers, on the other hand, may book their flights in advance and have more flexibility with their travel plans, so airlines often offer discounted fares for them. This is known as price discrimination based on the customers' willingness to pay. Unrestricted fares and temporary price cuts are not necessarily examples of price discrimination, as they may apply to all customers equally. Engaging in price-fixing is illegal and unethical, so it is not a valid strategy for airlines to use.

Airline Companies Engage in Price Discrimination by