Question

Airlines offer lower prices to vacationers than to business travelers because ____

(A) business travelers do not care at all about costs.
(B) business travelers are less flexible in their travel plans than vacationers are.
(C) of government regulations requiring them to do so.
(D) airlines know that business travelers enjoy flying more than vacationers do.

Answer 1

Answer: Option B

Explanation: The business travelers are less flexible in their travelling schedule as they have some potential material gains from such a travel. The vacationers usually have planned their vacations in advance and are flexible to some changes however the business travelers might be running on a schedule and have less flexibility.

Thus, the need for business traveler is quite high than the vacationers thus making the demand less elastic as relative to others.

Hence from the above we can conclude that the correct option is B.