Q. In the transportation industry, the no-frills, low-cost airliners compete with train and luxury bus services. This is an example of __?
Answer: Direct competition among substitute Products
Notes: The correct answer is "Direct competition among substitute products." This is because low-cost airlines, trains, and luxury buses serve the same purpose of transporting passengers from one location to another, making them substitutes for each other. According to the International Air Transport Association (IATA), low-cost carriers have importantly increased market share, often competing directly with rail services in regions like Europe, where high-speed trains are prevalent. This competition influences pricing and service offerings across these modes of transport.