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Old Nov 5, 2015 | 10:28 am
  #13  
Soccerdad1995
 
Join Date: Feb 2014
Programs: UA Plat, SPG Gold, Marriott Gold
Posts: 677
Originally Posted by neodescis
I'm sorry, but are you seriously suggesting that low demand brings high fares? That is quite simply not how supply and demand work.
It kinda sorta depends on the price elasticity of demand. If there are only 5 people in the world demanding a life saving drug, demand is not very high, but I can probably still charge a hell of alot for that drug (I'm ignoring government regulation here).

The operative question is what price causes UA to maximize the revenue from each flight on this route?
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