Question: Please type the answer by computer, so i can see it clearly, thank you!! Airline A and Airline B operate commercial flights in the HKG-CJU

Please type the answer by computer, so i can see it clearly, thank you!!

Airline A and Airline B operate commercial flights in the HKG-CJU market, and ES701 and ES702 are flying over them. The theoretical price-demand curves for HKG-CJU are shown in the diagram below, along with the price levels set by the two airlines:

Please type the answer by computer, so i can see Questions:

1(a) According to the above price-demand curve and the price levels set by Airline A and Arline B, without using equations, explain which airline can gain higher theoretical revenue?

1(b) What is the name of the pricing practice that aims to achieve maximum revenue by increasing the number of price levels?

1(c) Discuss two challenges in adopting the pricing practice in 1(b). Provide two suggestions to overcome the challenges.

Price Price $6000 $5000 $5000 $3800 $38001 $28001 100 140 Quantity 70 100 140 170 Quantity Airline A Airline B

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