Question: Airlines give away millions of tickets each year through their frequent flyer programs, with the typical airline awarding a ticket for each 25,000 miles flown on the airline. The average airline ticket costs $500 and is for a 2,500-mile round trip. Given this

information, evaluate the following statement: Airlines could have the same effect on

demand by eliminating their frequent flyer programs and simply lowering the average

ticket price by 10 percent.