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Question

Which of the following causes airlines to increase the number of flights?


A

A fall in oil prices

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B

A rise in oil prices

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C

Technology for fuel-efficient engines

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D

An increase in ticket prices

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Solution

The correct options are
A

A fall in oil prices


C

Technology for fuel-efficient engines


D

An increase in ticket prices


Supply increases when costs come down. Hence, fall in oil prices and fuel-efficient technology will cause an increase in the number of flights. Also, an increase in ticket prices will cause a corresponding increase in the number of flights according to the law of supply.


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