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:
“Fortune raises up and fortune brings low both the man who fares well and the one who fares badly; and there is no prophet of the future for mortal men.”
—Sophocles (497–406/5 B.C.)
“And because of the increase of lawlessness, the love of many will grow cold.”
—Bible: New Testament, Matthew 24:12.
“Value is the life-giving power of anything; cost, the quantity of labour required to produce it; its price, the quantity of labour which its possessor will take in exchange for it.”
—John Ruskin (1819–1900)
“For precocity some great price is always demanded sooner or later in life.”
—Margaret Fuller (1810–1850)