This airline used to charge $450 per customer. but now it charges $300 to customers who buy their tickets at least two weeks in advance and $600 to customers who do not. to ensure that late buyers will get tickets, discriminating fliers sets aside 75 tickets for them. click the areas that represent additional net revenue when the airline price-discriminates.

Question

Business

Eliana Sloan

31 March, 12:10

This airline used to charge $450 per customer. but now it charges $300 to customers who buy their tickets at least two weeks in advance and $600 to customers who do not. to ensure that late buyers will get tickets, discriminating fliers sets aside 75 tickets for them. click the areas that represent additional net revenue when the airline price-discriminates.

+1

Answers (1)

Know the Answer?

Camryn Arias · Answer 1

The additional revenue is calculated based on the difference between the new price of $600 compared to the old price of $450, times the number of ticket holders paying the higher price, which is 75. (The click-on feature didn't work, so I am writing this in text form.)