When Airlines Were Deregulated, Airfares Declined by 30 Percent

question 66

Multiple Choice

When airlines were deregulated, airfares declined by 30 percent. Deregulation is an example of political forces:

• A) letting the market move toward equilibrium, reducing excess supply.
• B) letting the market move toward equilibrium, reducing excess demand.
• C) making the market move away from equilibrium, creating excess supply.
• D) making the market move away from equilibrium, creating excess demand.

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Definitions:

James-Lange Theory

A theory suggesting that emotions occur as a result of physiological reactions to events.

Two-factor Theory

A psychological theory that posits that emotions are based on two factors: physiological arousal and cognitive labeling of that arousal.

Schachter-Singer Theory

A theory of emotion that states emotions are determined by physiological arousal and its interpretation, based on environmental cues.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses occur simultaneously and independently.