The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated
Most subsidies can't exceed $200 per passenger. Without this subsidy, what is TRUE? A) There would be higher prices and fewer flights.
B) There would be lower prices and fewer flights.
C) There would be an increase in supply.
D) There would be a decrease in demand.
A
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Which of the following is true? a. Sellers are willing to supply more of a good or service at every price after costs have increased. b. A fall in the price of a product leads to an increase in the profits earned by sellers
c. A fall in the cost of production leads to a downward movement along the supply curve of a product. d. Sellers are willing to supply more of a good or service at every price after costs have decreased. e. An increase in the price of a product leads to a fall in the profits earned by sellers.
The reason a shock to one sector can spread to the whole economy is that
a. a decrease in production in one sector leads to an overall decrease in spending b. firms will need to help bail out other firms that are having troubles c. an increase in production in one sector will lead to an overall decrease in spending d. most shocks are not sector-specific but economy-wide e. workers laid off in the one sector will purchase more goods in another sector
According to the analysis in your textbook, the school voucher program would
A. decrease the level of spending on education. B. increase the level of spending on education. C. force some people to leave the public school system. D. leave the level of spending on education the same.
The demand curve for AIDS drugs is likely to be
A. upward sloping. B. vertical or close to vertical. C. no different that the demand for aspirin. D. horizontal or close to horizontal.