JetBlue Increases Fees for Checked Bags Bloomberg 8/27/18 \"JetBlue Airways Corp

Question

JetBlue Increases Fees for Checked Bags Bloomberg 8/27/18

"JetBlue Airways Corp., which for years let passengers check luggage at no charge, became the first major U.S. carrier to bump the fee for a first checked bag to $30.

The $5 increase is effective for trips booked starting Monday. JetBlue also raised the charge for a second checked bag by $5 to $40 and for a third piece to $150 from $100, according to the airline’s website."

Based on our textbook what would you expect to happen in the market for Jet Blue plane tickets?

Demand for tickets would increase because plane tickets and checked bags are complement goods

Demand for tickets would decrease because plane tickets and checked bags are complementary goods

Demand for tickets would increase because plane tickets and checked bags are substitute goods

Demand for tickets would decrease because plane tickets and checked bags are substitute goods

Explanation / Answer

Demand for tickets would decrease because plane tickets and checked bags are complementary goods.

Both goods are used together. If the price of one good goes up, the quantity demanded of the other good would decrease.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.