12 Questions
When the other things are equal, the demand for mid-week promotional fare directed at the pleasure market is elastic.
True
Decide whether a change in demand or a change in the quantity demanded is involved in each of the following illustrations: Competitor B offers a special promotional fare on the same route as Airline A’s. (........................... ) (from Airline A's perspective)
Change in demand
Decide whether a change in demand or a change in the quantity demanded is involved in each of the following illustrations: Airline D as a regional airline increases the number of flights at a particular hub airport served by Airline A. (........................)
Change in demand
A change in demand can NOT be caused by changing
Price
Decide whether a change in demand or a change in the quantity demanded is involved in each of the following illustrations: Airline C lowers its price on a particular route segment and experiences an increase in the number of passengers carried. ( .................................)
Change in the quantity demanded
What effect will the following scenario have on the demand for Airline A’s passenger traffic?
Competitor E experiences a serious crash on takeoff.
Increase
An inverse relationship between price and quantity demanded is:
Law of demand
Both variable cost and fixed cost are operating costs of airlines.
True
When the other things are equal, the demand for the long-haul, primarily vacation flights is elastic.
True
When the other things are equal, the demand for short-haul, primarily business-market flights is elastic.
False
Which of the following is one type of variable cost?
Flight crew expenses
What effect will the following scenario have on the demand for Airline A’s passenger traffic?
Competitor B offers a special promotional fare on the same route as Airline A’s.
Decrease
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