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...ng low cost tickets. Thus, Ryanair taps into this surplus through ancillary means. For example, if a consumer is willing to pay $200 for a ticket from Dublin to London and Ryanair offers the ticket for $46, he has a consumer surplus of $154. From this, the traveler will be more likely to spend money on food, drinks, and entertainment onboard the flight. Moreover, the traveler is more willing to by an extra ticket for a friend or family member. Discrete Demand P Consumer Surplus 200 138 Traveler is indifferent to buying another ticket 92 P* 46 1 2 3 4 *Fixed Model with Assumptions Price Elasticity From a price elasticity standpoint, vacation travelers are elastic and business travelers are inelastic. This is based on the behavior of travelers in regards to their preferences, budget constraints, and available alternatives. Generally, vaca...