Holiday makers only want to fly into ontario
Course:- Business Economics
Length: 666 words
Reference No.:- EM13149091

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

An airline is interested in the relationship between two routes - the New York-to-Los Angeles(LAX) segment and the New York-to-Ontario route. Assume that business travellers want to go to Los Angeles,  but can fly into Ontario if they have to. On the other hand, holiday makers only want to fly into Ontario (they value a flight to Los Angeles at $0) and have a lower value of a flight than business travellers. What pricing strategy options are available to the airline? In addition, what relationship between the two markets limits the airlines ability to raise price. Suggest any strategies that can help overcome this relationship?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
If an investor bought 1 XYZ Feb 60 call at 4 when the market is 62. Is the contract in the money, at the money or out of the money? Does the contract have instrinic value? If
Anthony is considering the purchase of used car. The price, including the title and taxes, is $9,530. Anthony is able to make a $2,530 down payment. The balance, $7,000, will
How do you think each of the following affected the world price of oil? a) A major war began in the oil-rich Middle East. b) The Alaskin oil pipeline was completed. c) The cei
There is a loan for 5,00 dollars with interest of 8 % annually. There is another way to repay the 5,000 dollar by making 4 annual payments of 1,000. Then what would the 5th
Suppose there are two types of customers for a cell phone service: undergraduates (U) and grad Students (G). The aggregate (inverse) demand curve for undergraduates is PU = 10
Explain what each of the estimated coefficients means that is interpret the results. Explain. Are each of the estimated coefficients statistically significant at the 5% level
Weekly inverse demand function is P=296-7Q, weekly inverse supply function is P=17+2Q. Find equilibrium price & quantity & solve for consumer & producers surplus. Then tax of
Consider data on U.S. Pizza Sales from 2005. The market shares of the top 4 firms was 17% for Pizza Hut, 11% for Domino’s, 6% for Papa John’s, and 2.5% for Little Caesars. Fir