-Refer to Exhibit 5-5.If the airline charges a price that is between P₁ and P₂ for both aisle seats and middle seats,the result will be A) a surplus of middle seats and a shortage of aisle seats. B) a surplus of aisle seats and a shortage of middle seats. C) a shortage of middle seats and the equilibrium quantity of aisle seats. D) a shortage of aisle seats and the equilibrium quantity of middle seats.

Question

Quizplus · Accepted Answer

Charging a price between those two points means the price is below the equilibrium for aisle seats (leading to higher demand than supply, hence a shortage) and above the equilibrium for middle seats (leading to lower demand than supply, hence a surplus).