A couple of questions about ratings and demand

In real life, if I am between a 100 dollars flight that has mediocre service and a 200 dollars flight which has an exceptional on-board service, I would choose the first one, based on my income level like a great portion of air travelers. Is this situation reflected in the game at all, or is it the price-performance ratio that ultimately matters at the end? If it’s the latter, what’s the difference between operating a low-cost flight or a luxurious one if they have the same price-performance ratio? In fact, wouldn’t a high price-high cost model result in a higher profit if the margin is the same with a low cost one? I am also confused by the price factor. Is it also included in the calculation of the product overall, or is it only there to calculate the PPR?
Second question is whether the game creates a seperate demand for business class and first class. Do they have a different set of demand base? If there are no business seats available, do they act like regular economics pax?