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Please Answer in detail as to why with an example showing As you know, airlines practice price discrimination by charging leisure and business travelers with
Please Answer in detail as to why with an example showing
As you know, airlines practice price discrimination by charging leisure and business travelers with different prices. They could do so because of the different elasticity of demand between these two groups of travelers. Different customers pay varying prices for essentially the same coach seat because some passengers qualify for discounts and others do not. Since the discounts are substantial in many cases, the customer who qualifies for a discount pays a significantly lower airfare. Now, please answer the following question: b. Is this consistent with profit-maximization? Given the current high cost of jet fuel, will you continue this practice? Why or why not? Please explain. Make sure to include switching cost, upselling point right away and be detailed as to why. 1 big paragraph if you can get to the 2Step by Step Solution
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