Asked by Kanidra Stringer on Apr 29, 2024
Verified
The market price of airline flights increased recently.Some economists suggest that the price increased because several airlines went out of business.They believe that,in the market for flights:
A) supply increased.
B) supply decreased.
C) demand increased.
D) demand decreased.
Airline Flights
Scheduled services operated by airlines for the transportation of passengers and cargo between different destinations.
Market Price
The present cost at which a service or asset is available for purchase or sale in a specific market.
Airlines
Companies that provide air transport services for traveling passengers and freight.
- Understand the impact of variations in input costs on market equilibrium.
Verified Answer
NP
NAKYRA PROPHET SMITHMay 05, 2024
Final Answer :
B
Explanation :
When several airlines go out of business, the overall supply of flights decreases in the market, leading to an increase in market price. Therefore, the correct choice is B as supply has decreased.
Learning Objectives
- Understand the impact of variations in input costs on market equilibrium.
Related questions
Many Public Utilities Burn Oil to Generate Electricity ...
The Price of Microchips Used to Produce Computers Falls ...
In the Market for Grass-Fed Beef,what Would Cause a Price ...
Suppose the Input Costs Associated with Manufacturing Hair Replacement Treatments ...
In the Market for Corn Tortilla Chips,what Would Cause a ...