The September 11 Terrorist Attacks Turned Many People Away from Flying

question 107

Multiple Choice

The September 11 terrorist attacks turned many people away from flying. The demand and supply model would predict which of the following events in the airline travel market?

• A) The supply of airline travel would decrease, resulting in a higher equilibrium price and lower equilibrium quantity.
• B) The supply of airline travel would increase, resulting in a lower equilibrium price and higher equilibrium quantity.
• C) The demand for airline travel would decrease, resulting in a lower equilibrium price and lower equilibrium quantity.
• D) The supply and demand for airline travel would decrease, resulting in a higher equilibrium price and higher equilibrium quantity.

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Definitions:

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