A town with a small airport is served by two competing airlines. Which of the following strategies would make the airlines more likely to compete on price? a) The airlines fly identical planes, with the same type of seat and the same amount of legroom for customers
b) One airline offers meals on board every flight while the other serves no meals but has fewer delayed flights
c) Each airline offers flights to a different set of other cities
d) The airlines offer loyalty programs, motivating existing customers to continue to fly with them

Option A, The airlines fly identical planes, with the same type of seat and the same amount of legroom for customers.

Explanation:

Option “A” is correct because a firm or company compete on prices if the product offered by every firm are identical. additionally, if the product can not be differentiated then the firm can compete on the basis of price. Therefore, if two airlines fly identical planes and provide identical services like the same seat and the same amount of leg space to the customers.  

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.