Which of the Following Would Decrease the Supply of Airline

question 80

Multiple Choice

Which of the following would decrease the supply of airline travel?

• A) Reduced numbers of airline travellers.
• B) New airline companies beginning operations.
• C) Higher fuel costs.
• D) Lower prices for airline tickets.

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Definitions:

Future Dollars

Money that is adjusted for anticipated inflation or deflation, representing its expected future value rather than its current value.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The financial outlay required to produce an additional unit of a product or service.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.