Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 11

In 2012, an Australian airline company separated its international and domestic operations into separate companies. The company had been facing increasing competition from much larger competitors in international markets but had relatively little competition in domestic markets that had a higher price elasticity of demand. Which row shows the reasons that would support this separation?

1. Ano | yes | yes
2. Byes | no | yes
3. Cyes | yes | no
4. Dyes | yes | yes

As printed in the paper