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snow_lady [41]
4 years ago
8

23. Airlines that engage in price discrimination charge higher prices to business travelers because their _____ is more _____ th

an that of other travelers. demand; elastic supply; inelastic supply; elastic demand; inelastic
Business
1 answer:
MrMuchimi4 years ago
5 0

Answer:

demand; inelastic

Explanation:

Price discrimination is when a seller charges different prices for the same product in different markets. Price discrimination is usually practised by monopolists. The aim of price discrimination is to eliminate consumer surplus.

A seller would usually charge a higher price to a consumer whose demand is price inelastic. This means that the quantity demanded is less sensitive to changes in price.

If the seller charges a higher price to a consumer whose demand is price elastic, the consumer would reduce the quantity demanded as a result of the rise in price and the total revenue of the seller would fall.

I hope my answer helps you

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If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in it
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The duration gap is calculated by subtracting the duration of the liabilities from the duration of the activity of the financial entities. Thus, in this case, the net worth of  1.8 percent of its assets.

<h3>What do you mean by Duration Gap?</h3>

Duration Gap refers to the term used by funds, banks, pensions, or many financial institutions to estimate the risk because of changed interest rates.

Also, if we have a negative duration gap means that the market value of equity will increase when interest rates rise.

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