Economics 9708 · AS & A Level · 7.7

7.7 — practice question

During 2012, an Australian airline company split its international and domestic operations into different companies. It had been encountering growing competition from much larger rivals in international markets, while there was comparatively little competition in domestic markets, where price elasticity of demand was higher. Which row identifies the reasons that would justify this separation?

  • Ano / yes / yes
  • Byes / no / yes
  • Cyes / yes / no
  • Dyes / yes / yes

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