Exhibit 5-5

Refer to Exhibit 5-5. If the airline charges price P₁ 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 P₁ for both aisle seats and middle seats, the result will be

Quizplus · Accepted Answer

According to the graph, the intersection of the supply and demand curves occurs at a price of PS2U2B2S2U2B0, which is higher than P₁. Therefore, if the airline charges P₁ for both aisle and middle seats, there will be a shortage of aisle seats and the equilibrium quantity of middle seats.

Exhibit 5-5 Refer to Exhibit 5-5. If the Airline Charges Price P1

Exhibit 5-5 Refer to Exhibit 5-5. If the Airline Charges Price P₁