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

Assignment Help
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
Suppose all workers value their leisure at at 90 goods per day. The production function relating output per day to the number of people working per day (L) is: Assume there ar
Ryan and Asha produce water skis and wakeboards. The first table shows Ryan’s production possibilities and the second table shows Asha’s production possibilities. Each week, R
Suppose the following table reflects the domestic supply and demand for compact discs (CD’s). Now suppose that foreigners enter the market, offering to sell an unlimited suppl
In a local market, the price of product X decreases from $20 to $12, and the total quantity of monthly accounts increases from 100,000 to 225,000 In a local market, the price
1. Consider the ways in which the differences among state and federal laws on marijuana show both the strengths and weaknesses of a federal system. On this issue, do you thi
From 1982 to 1986 retail sales of furs in the U.S rose from $0.4 billion to 1.0 billion. After this time, there was no additional growth until 1989 when sales increased slight
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day
Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee. Ryan considers convergence to be true in theory but impractical in the real