An Increase in Costs Associated with Additional Security Measures Taken

question 198

Multiple Choice

An increase in costs associated with additional security measures taken by the airlines is most likely to lead to:

• A)​a decrease in equilibrium price and a decrease in equilibrium quantity.
• B)​a decrease in equilibrium price and an increase in equilibrium quantity.
• C)​an increase in equilibrium price and a decrease in equilibrium quantity.
• D)​an increase in equilibrium price and no change equilibrium quantity.

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Definitions:

Consolidated Omnibus Budget Reconciliation Act

A federal law that provides for the continuation of group health insurance coverage for individuals and their families after a job loss or other qualifying event.

Health Coverage

Insurance that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for family and medical reasons.

Foreseeable

Able to be anticipated or predicted based on current knowledge or understanding.