Exhibit 5-5

Refer to Exhibit 5-5. If the airline charges price P₂ for both aisle seats and middle seats, the result will be

Question

Exhibit 5-5 Refer to Exhibit 5-5. If the airline charges price P₂ for both aisle seats and middle seats, the result will be

Quizplus · Accepted Answer

Charging the same price for both aisle and middle seats will result in a surplus of middle seats as demand for middle seats will be lower than their supply at that price. The equilibrium quantity of aisle seats will be reached as the demand for aisle seats will be equal to their supply at that price. Therefore, there will be a surplus of middle seats and the equilibrium quantity of aisle seats.

Exhibit 5-5 Refer to Exhibit 5-5. If the Airline Charges Price P2

Exhibit 5-5 Refer to Exhibit 5-5. If the Airline Charges Price P₂