If the Equilibrium Price of an Airline Ticket Is $500

question 275

True/False

If the equilibrium price of an airline ticket is $500 and the government imposes a price floor of $400 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.

---

Definitions:

Informal Communication

This is the unofficial, casual form of communication that occurs within an organization, often referred to as the grapevine.

Federal Labor Laws

Laws established by the federal government to regulate labor practices, protect workers' rights, and manage relations between unions, employees, and employers.

Stock Options

A form of employee benefit that gives an employee the right, but not the obligation, to purchase company stock at a set price within a specific time period.

Hourly Employees

Workers who are paid for the number of hours they work, rather than receiving a fixed salary.