1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Eddi Din [679]
3 years ago
6

Suppose an airline determines that its customers traveling for business have inelastic demand and its customers traveling for va

cations have elastic demand. If the airline’s objective is to increase total revenue, how should it change the price charged to vacationers? How should it change the price charged to business travelers? Explain.
Business
1 answer:
ss7ja [257]3 years ago
8 0

Answer:

The correct answer is that the company should <u>charge more to the business travelers</u> and <u>charges less to the vacationers</u>.

Explanation:

To begin with, the concept called ''elasticity'', in the field of economics, refers to the variation that occurs when a change in one variable affects a change in another variable. Moreover, this concept has many applications regarding if the main subject is the supply of a product or the demand of a product.

Secondly, the <em>price elasticity of demand</em> is an elasticity application in economics that establishes the changes that occur to the demand of a product when the price changes. This elasticity could be inelastic or elastic. In addition, if the price elasticity of demand is inelastic then when the price changes the quantity demanded of that product will not change drastically while in the other hand, if the price elasticity of demand is elastic then when the price changes the quantity demanded of that product will change drastically so therefore the consumers reject the change in the price.

Finally, if the company wants to increase its total revenue then it must increase the price that charges to the business travelers and decrease the price that charges to the vacationers.

You might be interested in
As the price of a resource decreases, _____. a. the supply of that resource increases b. producers are more willing and able to
solmaris [256]

Answer:

b. producers are more willing and able to hire that resource

Explanation:

In production resources are defines as various inputs in the production process of a product.

It contributes to the final product that a consumer buys and they have their various costs which are used to obtain their use.

So when the price of a resource decreases, it means that the cost of production also decreases.

There is now more outlay of cash that can be used hire that resource.

Producers are able to produce more of the final product so supply increases.

6 0
3 years ago
THIS IS TIMED!!
Dominik [7]

Answer:

b,d,e

Explanation:

i jus know

7 0
3 years ago
Read 2 more answers
Suppose you're pitching in a softball game and facing a good hitter. you remember that you struck her out with a fastball the la
WARRIOR [948]
<span>When you make this decision, you are primarily using your critical thinking. You are using information you were given in the past and applying it to future events.</span>
8 0
3 years ago
By Nike changing the technology in their shoe, they are taking on a role of being more socially responsible. What type of busine
Arisa [49]

Explanation:

In this case, Nike is incorporating corporate governance into its business model, which is defined as a model for managing companies using the best market practices, using transparency, equity and social and environmental responsibility as essential parameters.

Companies today are no longer perceived by society as merely profitable entities, it is a social demand that companies assist in the development of society and minimize their impacts on the environment.

When companies develop programs to support society and sustainability, it guarantees the advantages of being better positioned in the market, attracting more investors, adding more value to its products and services and gaining a strategic and competitive advantage in the market.

5 0
3 years ago
need this ASAP. question: Explain how a government is able to slow down or speed up the economy’s rate of growth.
Varvara68 [4.7K]
By adjusting spending and tax rates (known as fiscal policy) or managing the money supply and controlling the use of credit (known as monetary policy), it can slow down or speed up the economy's rate of growth and, in the process, affect the level of prices and employment.
7 0
3 years ago
Other questions:
  • On Aug 7, 2014 the stock AAPL closed at $94.48. At this time, the call with strike $94 and expiration Aug 29, 2014 was traded at
    11·1 answer
  • When product designers use computer-aided design (CAD) software to produce technical drawings in three dimensions, they are usin
    12·1 answer
  • When Bread and Butter Bakers got the newest batch of flour, they noticed a price increase of $1.00 per pound of flour (double th
    15·1 answer
  • Which arrangement represents a long-term company-wide incentive plan that provides employees with the option to purchase ownersh
    10·1 answer
  • OPSEC is a five-step process to identify, control and protect critical
    13·2 answers
  • Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of
    6·2 answers
  • You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c
    7·1 answer
  • Suppose that you have $100 today and expect to receive $100 one year from today. Your money market
    8·1 answer
  • On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The ma
    9·1 answer
  • A car is driven 15Km East for 12minutes before the road changes. The car is then driven south for 18minute​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!