Question

Airlines require every passenger with a ticket to have a matching government-issued photo identification. Price discrimination is made easier because:
a. this type of price discrimination is mandated and supported by the federal government.
b. customers are then willing to divulge relevant information to the airline about their reservation price.
c. customers acknowledge that they are exchanging higher ticket prices for decreased safety regulations.
d. this practice allows airlines to determine the different personal characteristics of their buyers at a zero cost.
e. this practice prevents a passenger who purchased a discounted fare from reselling that ticket to another customer who is willing to pay more.

Answer 1

Answer:

Letter e is correct. This practice prevents a passenger who purchased a discounted fare from reselling that ticket to another customer who is willing to pay more.

Explanation:

Price discrimination is a practice where selling the same product can have different values.

This practice is very common in airlines, whose activities have variables that directly influence ticket pricing. As well as they can offer promotional prices, and advantages and benefits, which contributes to fluctuating prices of the same air ticket for different types of customers.

Therefore a legal photo ID is required with the ticket for greater control and ease of price discrimination, as well as to avoid arbitrary ticket transfer.