Essay
Airlines give away millions of tickets each year through their frequent flyer programs,with the typical airline awarding a free ticket for each 25,000 miles flown on the airline.The average airline ticket costs $500 and is for a 2,500-mile round trip.Given this information,evaluate the following statement:
Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent.
Correct Answer:
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The statement is false.The frequent flye...View Answer
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Correct Answer:
Verified
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