Ask Question
13 April, 22:17

g The round-trip business class airfare from Boston to Amsterdam (from August 18 through August 21) is $6,000. The round-trip business class airfare from Boston to Amsterdam to Athens and then returning to Boston (from August 18 through August 31) is $4,000. What is the most likely explanation for this price difference?

+4
Answers (2)
  1. 13 April, 22:46
    0
    The Boston-Amsterdam round-trip travelers are more likely to be on business, whereas the multi-city travelers going to Greece are likely to be on vacation, and therefore more price-sensitive.

    Explanation:

    The customers with more price - sensitivity are charge less than the customers with less price-sensitivity. multi-city travelers are more likely to be on a tour of cities and the Boston-Amsterdam travelers are likely to be on business.
  2. 13 April, 22:50
    0
    The reason for this is that aire company's have a roken demand

    When the flights are for business people they have a lwoer price elasticity than tourist. In this case the Bston to Amsterdam, for reasons of times it is considered a business flight in the company's price policy thus, hiigher price.

    While the other, as it has more days in the foreing country is considered tourist thus, a different price policy applied.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “g The round-trip business class airfare from Boston to Amsterdam (from August 18 through August 21) is $6,000. The round-trip business ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers