Many Airlines Have Not Reduced or Eliminated Fuel Surcharges Despite

question 230

Multiple Choice

Many airlines have not reduced or eliminated fuel surcharges despite the price of oil dropping. A logical reason for this is that the decline in fuel prices

• A) shifted the supply curve for airline tickets to the left, and at the same time an increase in demand for airline tickets shifted the demand curve to the right, so prices did not decline.
• B) shifted the supply curve for airline tickets to the right, and at the same time a decrease in demand for airline tickets shifted the demand curve to the left, so prices still increased.
• C) shifted the supply curve for airline tickets to the right, and at the same time an increase in demand for airline tickets shifted the demand curve to the right, so prices still increased.
• D) shifted the supply curve for airline tickets to the left, and at the same time a decrease in demand for airline tickets shifted the demand curve to the left, so prices did not decline.

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Definitions:

F-distribution

A probability distribution that arises in the analysis of variance (ANOVA), used to compare variances and determine statistical significance.

T-distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and the population variance is unknown.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Independent Sample Variances

A measure of the variability in each of two or more independent samples, used in hypothesis testing to assess the assumption of equal variances.