Research by Daniel Kahneman,Jack Knetch,and Richard Thaler has shown that companies like airlines were explicitly able to include a fuel surcharge in their prices because
A) consumers had no choice but to pay the price of the surcharges due to the lack of competition in the industry.
B) a government-imposed price ceiling on airline ticket prices left the airlines not other way to cover the increase in costs.
C) adding a separate fuel surcharge to the price of airline tickets did not actually increase the price of the tickets.
D) consumers see it as fair for firms to raise prices after an increase in costs.

Question

Quizplus · Accepted Answer

Consumers perceive it as fair for firms to raise prices when there is an increase in costs, such as fuel prices, which allows companies to include a fuel surcharge without significant backlash.

Research by Daniel Kahneman,Jack Knetch,and Richard Thaler Has Shown That