To maximize profits,an airline will offer _ prices to customers with _ demand.

A) higher;inelastic
B) higher;elastic
C) lower;inelastic
D) the lowest;the least

Question

To maximize profits,an airline will offer _____ prices to customers with _____ demand.A) higher;inelasticB) higher;elasticC) lower;inelasticD) the lowest;the least

PANKAJ GANGWAR · Accepted Answer

Final Answer : A, Explanation :  When demand is inelastic, customers are willing to pay a higher price for the same product or service, which means that the airline can charge higher prices and still sell a similar amount of tickets. This can lead to higher profits for the airline. On the other hand, if demand is elastic, customers will be more price sensitive and may choose a competitor offering a lower price, so the airline will need to lower its prices to maintain sales volume, which can lead to lower profits.

To maximize profits,an airline will offer _ prices to customers with _ demand.

A) higher;inelastic
B) higher;elastic
C) lower;inelastic
D) the lowest;the least

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Learning Objectives

Learning Objectives

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