1. Southwest AIrlines
As the number of airlines increase, so does the pressure of decreasing ticket prices in order to attract a greater market. ... This statement is true because when ticket prices increase, the number of tickets purchased decrease. ... The basic premise behind this is that even if an airline lowered its ticket price, it would not attract more customers. ... If the price of an airline ticket increased dramatically, then alternative forms of travel (the substitutes) would become more desirable. Conversely, if the price of an airline ticket decreased, then alternate forms of travel would be less des...
- Word Count: 1371
- Approx Pages: 5
- Grade Level: Undergraduate