Question

Can you think of another real-life example (other than hotels) where prices change frequently? Explain why the prices keep changing.

Answer 1

Airline Tickets

• The prices of airline tickets change frequently. For example, the price of a ticket may be higher during festivals, holidays, or weekends because many people want to travel. When the demand for tickets increases but the number of available seats remains limited, airlines may increase their prices.
• On the other hand, if fewer people are travelling and many seats are still available, airlines may reduce the prices to attract more passengers. Prices can also change because of factors such as fuel costs, competition between airlines, and the time of booking.

Thus, airline ticket prices keep changing mainly because demand and supply keep changing. This shows how market forces influence prices in our daily lives.