Answer to Question #293408 in Economics of Enterprise for Esi

Question

: Currently XYZ airline charges 550 dollars for a Dubai-London ticket (economy) on this plane. Suppose 10 economy seats are left unsold when the plane is starting to board the passengers. A standby passenger offers to pay 250 dollars for a seat. Should the airline sell the ticket to this passenger at 250$? Yes or No? Briefly explain your reason.

Answer 1

No.

With the passengers already started to board, confirms the economic suitably, of progressing with the flight. Moreover, the virtue of the standby passenger being present at the time, confirms their interest on flying, which shall compel them to book at full price.