Price floors on airlines:
A) kept ticket prices much lower than unregulated ticket prices.
B) caused airlines to compete by offering customers higher-quality services, such as better meals and wider seats.
C) reduced the quality of airline services (for example, less frequent flights, peanuts instead of meals) .
D) gave airlines an incentive to lower ticket prices to increase ticket sales.
Correct Answer:
Verified
Q253: One of the virtues of the market
Q254: Southwest Airlines was able to enter the
Q255: Figure: Airline Industry Q256: Most economists favor price controls as a Q257: Labor unions are composed of high-skilled workers, Q259: Which is not an effect of a Q260: A price ceiling is a legal maximum Q261: Minimum wage laws are an example of Q262: President Richard Nixon froze all prices and Q263: Suppose that supply is fixed at 100![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents