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Other Fields Homework Help Economics Topic started by: Sublight2097 on Jun 20, 2015



Title: If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who purchas
Post by: Sublight2097 on Jun 20, 2015
If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who purchase tickets at least 30 days in advance and agree to stay over a Saturday night, what is the most likely effect upon first-class passenger service?
A) First-class fares will rise somewhat to compensate for the loss on other fares.
B) The demand for first-class service may fall somewhat because the price of a substitute good has decreased substantially.
C) The marginal cost of first-class service will rise somewhat because the total cost must be allocated among all passengers.
D) The marginal revenue from first-class service will rise somewhat because first-class service is now more clearly a superior good.


Title: Re: If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who pur
Post by: Smoooth on Jul 27, 2015
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Title: Re: If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who purchas
Post by: Sublight2097 on Aug 31, 2015
I've noticed they use a lot of trickery with their questions. Thank you for your input.


Title: Re: If a commercial airline starts offering maxi-saver fares at huge discounts to passengers who purchas
Post by: Smoooth on Aug 31, 2015
Don't mention it :-]