In late 1991 two firms, Delta Airlines and the Trump Shuttle, provided air shuttle service between New York and Boston or Washington. The one-way price charged by both firms was $142 on shuttle mileage given to members of the Delta frequent-flier program from 1,000 to 2,000 miles, even though actual mileage from New York to either Boston or Washington is about 200 miles. Moreover, Delta also offered an extra 1,000 miles to frequent fliers who made a round-trip day's total to 5,000 miles. Almost simultaneously, Trump changed the frequent-flier mileage it gave shuttle passengers. (It participated in the One Pass frequent-flier program with Continental Airlines and some weekdays and $92 on weekends, with lower off-peak advance purchase fares. In September 1991 Delta increased the per-trip on the same day, raising a possible foreign carriers.) What sorts of changes do you think Trump made? Why?
In late 1991 two firms, Delta Airlines and the Trump Shuttle, provided air shuttle service between New York and Boston or Washington. The one-way price charged by both firms was $142 on shuttle mileage given to members of the Delta frequent-flier program from 1,000 to 2,000 miles, even though actual mileage from New York to either Boston or Washington is about 200 miles. Moreover, Delta also offered an extra 1,000 miles to frequent fliers who made a round-trip day's total to 5,000 miles. Almost simultaneously, Trump changed the frequent-flier mileage it gave shuttle passengers. (It participated in the One Pass frequent-flier program with Continental Airlines and some weekdays and $92 on weekends, with lower off-peak advance purchase fares. In September 1991 Delta increased the per-trip on the same day, raising a possible foreign carriers.) What sorts of changes do you think Trump made? Why?
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.12P
Related questions
Question
Transcribed Image Text:In late 1991 two firms, Delta Airlines and the Trump Shuttle, provided air shuttle service between New York and Boston or Washington. The one-way price
charged by both firms was $142 on
shuttle mileage given to members of the Delta frequent-flier program from 1,000 to 2,000 miles, even though actual mileage from New York to either Boston
or Washington is about 200 miles. Moreover, Delta also offered an extra 1,000 miles to frequent fliers who made a round-trip
day's total to 5,000 miles. Almost simultaneously, Trump changed the frequent-flier mileage it gave shuttle passengers. (It participated in the One Pass
frequent-flier program with Continental Airlines and some
weekdays and $92 on weekends, with lower off-peak advance purchase fares. In September 1991 Delta increased the per-trip
on the same day, raising a possible
foreign carriers.) What sorts of changes do you think Trump made? Why?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you