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1 May, 16:43

Two airlines serve the route between Tampa and Houston. What will happen to one airline if the other one raises its prices? A. There will be a movement downward, to the right, along its initial demand curve. B. There will be a movement upward, to the left, along its initial demand curve. C. Its demand curve will shift to the left. D. Its demand curve will shift to the right

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  1. 1 May, 18:36
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    D. Its demand curve will shift to the right

    Explanation:

    If two airlines are competing for the same market, and airline A raises its price, the airline B will benefit because now it will be cheaper compared to the other one.

    This means that more people will be willing to purchase tickets from airline B at any given price (in this case, the same price as before), shifting the demand curve of airline B to the right.
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Home » Business » Two airlines serve the route between Tampa and Houston. What will happen to one airline if the other one raises its prices? A. There will be a movement downward, to the right, along its initial demand curve. B.
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