Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:
In an economy, introduction of various airlines lead to competition in the market. In the scenario of when large number of restrictions are imposed on travel, what will happen to the ticket fares of the airline companies?
Options:
It will rise
It will fall
It will remain unaffected
None of these
Correct Answer:
It will fall
Explanation:
Supply of service is increased and demand is reduced.