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The airlines have different rules on discounts for different types of travelers. The airlines do this because:
A) different types of travelers have different elasticities of demand
B) the different discounts are a marketing ploy to confuse consumers
C) the airlines computers are confused and so give different groups different discounts
D) all travelers respond to discounts in the same manner
E) business travelers are very flexible in their travel time and dates; vacationers have almost no flexibility

Respuesta :

Answer:

A) different types of travelers have different elasticities of demand

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand can range from elastic to inelastic.

Demand is price elastic if a small change in price has a greater effect on the quantity demanded.

Demand is price inelastic if a change in price has little or no effect on quantity demanded.

Airline industry tends to give discounts to customers with a more elastic demand to increase their demand.

I hope my answer helps you

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