question archive The round-trip business class airfare from Boston to Amsterdam (from August 18 through August 21) is $6,000
Subject:EconomicsPrice:2.87 Bought7
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?
1) The multi-city travelers probably care more about the comfort of their seats, whereas the Boston-Amsterdam travelers might be willing to buy coach seats since they will spend less total time in flight.
2) The Boston-Amsterdam travelers are probably more flexible to choose their dates of travel than the multi-city travelers, since they only need to spend a few days overseas.
3) The Boston-Amsterdam roundtrip 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.
4) The Boston-Amsterdam flights must be more costly for the airline than the three flights in the multi-city trip combined.
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