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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1219 |
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For example, it is widely known that leisure passengers are more price sensitive than business passengers and shorthaul passengers more so than longhaul ones.
For the low fare market, where competition is high and consumers seems to be price-sensitive, we define it as relatively price elastic, with elasticity equals 1...
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On the other hand, all 14 markets operated by the "Shuttle by United?were considered for United fourth quarter estimate. It was considered that United's average fare was $20 higher than Southwest's average fare on the markets that they don't compete and 7.5% higher on the others. The total daily operating profit for Southwest is $41,509 while the "Shuttle by United?has a loss of $266,303 (Appendix A)...
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