Over a five-year period in Republic X, the average price of domestic commercial airline tickets decreased by 22% in real terms, yet the aggregate dome

Question

Over a five-year period in Republic X, the average price of domestic commercial airline tickets decreased by 22% in real terms, yet the aggregate domestic passenger revenue collected by commercial airlines rose by 34%. During this identical time window, the total number of individual passengers who traveled on domestic flights remained virtually unchanged.

Which of the following, if true, most effectively resolves the apparent paradox described above?

Accepted Answer

Commercial airlines unbundled ticket pricing by instituting mandatory fees for checked baggage, seat selection, and priority boarding, generating ancillary revenues that far exceeded the ticket fare reductions.

Answer

The average distance flown per domestic trip decreased by 10% over the five-year period.

Answer

Aviation jet fuel costs declined dramatically due to international petroleum surpluses.

Answer

Airlines replaced older wide-body aircraft with modern fuel-efficient twin-engine turboprops.

Answer

The national government of Republic X eliminated subsidies previously provided to regional rural airports.

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More Critical Reasoning Questions in GMAT Focus