[Qs 10-13] Delta Airlines offers three fare classes (call them H, M and L) on it
ID: 3047223 • Letter: #
Question
[Qs 10-13] Delta Airlines offers three fare classes (call them H, M and L) on its flight from Salt Lake City (SLC) to Chicago (ORD). The ticket prices are $600, $400 and $200 respectively. Flight capacity is 250 seats. Suppose the booking limit for L is 150, and the protection level for H is 40.
10. What is the booking limit for the M fare?
A. 250
B. 210
C. 200
D. 150
E. 100
F. 60
G. 40
H. Cannot be determined from the information provided.
11. What is the booking limit for the H fare?
250
210
200
150
100
60
40
0
Cannot be determined from the information provided.
12. What is the protection level for the M fare?
250
210
200
150
100
60
40
Cannot be determined from the information provided.
13. What is the protection level for the L fare?
250
210
200
150
100
60
40
0
Cannot be determined from the information provided.
Explanation / Answer
Delta Airlines offers three fare classes H, M and L on its flight from Salt Lake City to Chicago. The ticket prices $600 (for H), $400 (for M) and $200 (for L) respectively. Flight capacity is 250 seats. Given the booking limit for L is 150 and the protection level for H is 40. As the airlines want to maximize their revenues so they will protect the H or higher class fares. But they will not limit if more than 40 people wants to buy H fare tickets. So booking limit for H will be 250. The booking limit for fare M will be ( booking limit for fare H - protection level for fare H ) = ( 250 - 40 ) = 210. Again booking limit for fare L will be ( booking limit for fare M - protection level for fare M) . Here we know the booking limit for fare L is 150. So protection level of fare M will be ( 210 - 150 ) = 60. As the airline will fill the empty seats of other fare classes with the lower fare class L. So the protection level of L will be 0. So the answers are as follows:-
10) The booking limit for fare M is 210
11) The booking limit for fare H is 250
12) The protection level for the M fare is 60
13) The protection level for the L fare is 0
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