Price Elasticity Airlines
The piece "Airlines try cutting business fares, find they don't lose revenue" explains how major airline firms in 2002 cut their business travel fares in an attempt to generate more business "and bring back business travelers who are staying at home, buying in advance or running to discount airlines" (McCartney, S. November 22, 2002). Of particular interest in this dynamic is the effect on total revenue generation resulting from the decrease in prices. Pricing logic might suggest that a decrease in fares would produce a loss in revenue however, in the case of Continental Airlines a fare decrease on a flight from Cleveland to Los Angeles from $2,000 to $716 resulted in Continental generating revenues equal to those at the previous higher rate, while gaining market share (McCartney, S. November 22, 2002). The rationale for this outcome can be explicated by the economic principle of price elasticity of demand.
The price elasticity of demand measures "how much the quantity demanded changes when the price of the good changes" (NetMBA. N.D.).From the law of demand it is understood that as the price of a good falls the quantity demanded will increase, and obversely a price increase in that good will result in a decrease in quantity demanded. The price elasticity of demand provides a value to the magnitude...
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances. In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
A favorite target for conspiracists today as well as in the past, a group of European intellectuals created the Order of the Illuminati in May 1776, in Bavaria, Germany, under the leadership of Adam Weishaupt (Atkins, 2002). In this regard, Stewart (2002) reports that, "The 'great' conspiracy organized in the last half of the eighteenth century through the efforts of a number of secret societies that were striving for
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