If the U.S.government decided to regulate the prices of airline tickets to keep them from falling when the economy is weak,there would tend to be a ________ of airline tickets in the market and this would likely ________ the profits of U.S.airlines.

Question

Quizplus · Accepted Answer

When prices are regulated to prevent them from falling, it can lead to a surplus because the price is kept above the equilibrium level where supply equals demand. This surplus would likely reduce the profits of U.S. airlines as they are unable to sell all their tickets at the regulated price.

If the USgovernment Decided to Regulate the Prices of Airline Tickets to Tickets