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An airline company charges a high price for a flight that leaves on a Wednesday and returns that Friday, and it charges a low price
An airline company charges a high price for a flight that leaves on a Wednesday and returns that Friday, and it charges a low price for a flight that leaves on a Friday and returns on Sunday. In this market, business travelers like to be home by the weekend, and leisure travelers are flexible on the dates they go. Why does the airline company charge a low price for the version that leaves on a Friday and returns on Sunday? because business travelers are more price sensitive when it comes to flights because this is favorable for leisure travelers, who won't have to skip work Incorrect: because this is favorable for business travelers, who have to travel for work because this is favorable for business travelers, who have to travel for work because leisure travelers have a higher reservation price when it comes to flightsBundling creates a(n) _____ to(for) getting the second good at a _____. incentive; low marginal benefit hurdle; lower price incentive; higher price hurdle; per-unit price
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