If there are only two airlines that fly between Dallas and New Orleans,what will happen in the market for one airline if the other one goes out of business?

Question

Quizplus · Accepted Answer

If one of the airlines goes out of business, there will be a decrease in the supply of flights between Dallas and New Orleans, leading to a higher price for the remaining airline. This, in turn, will lead to a higher willingness to pay among consumers for the remaining airline, shifting the demand curve to the right.

If There Are Only Two Airlines That Fly Between Dallas