Answered

In 2008, the world's airlines reported an increase in the total number of passengers carried, but a decrease in total revenues, even though prices of airline tickets on all routes remained unchanged from the year before.

Which of the following resolves the paradox described above?

A. The airline industry was a victim of the recession in 2008.
B. Total passenger miles were up in 2008.
C. Fuel costs remained constant from 2007 to 2008.
D. Passengers traveled shorter distances on less expensive flights in 2008.
E. No new aircraft were purchased by any carrier in 2008.



Answer :

Final answer:

The resolution to the paradox lies in passengers opting for cheaper flights and traveling shorter distances.


Explanation:

The resolution to the paradox described above can be attributed to option D: Passengers traveled shorter distances on less expensive flights in 2008. The decrease in revenues despite an increase in the total number of passengers carried can be explained by the fact that passengers opted for cheaper flights, possibly traveling shorter distances, which led to overall lower revenue despite more passengers.


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