Lower Fares Increase Quantity Demanded
The term was coined in 1993 by the U.S. Department of Transportation to describe the considerable boost in air travel that invariably resulted from Southwest's entry into new markets, or by another airline's similar activity (Ritter) . Southwest offered dramatically lower air fares than established airlines that usually enjoyed a near-monopoly in the communities.
Read more about this topic: The Southwest Effect
Famous quotes containing the words fares, increase, quantity and/or demanded:
“Whoever understands how to do a kindness when he fares well would be a friend better than any possession.”
—Sophocles (497–406/5 B.C.)
“As we grow older, we increase in folly—and in wisdom.”
—François, Duc De La Rochefoucauld (1613–1680)
“If we take in our hand any volume; of divinity or school metaphysics, for instance; let us ask, Does it contain any abstract reasoning concerning quantity or number? No. Does it contain any experimental reasoning, concerning matter of fact and existence? No. Commit it then to flames: for it can contain nothing but sophistry and illusion.”
—David Hume (1711–1776)
“A self-denial, no less austere than the saint’s, is demanded of the scholar. He must worship truth, and forgo all things for that, and choose defeat and pain, so that his treasure in thought is thereby augmented.”
—Ralph Waldo Emerson (1803–1882)