If pilots and flight attendants agree to wage and benefit ...

[frankwu]

If pilots and flight attendants agree to wage and benefit reductions in the wake of the financial difficulties in the airline industry, what impact would this have on the supply and demand in the market for airline service, assuming no other changes
 
  take place in this market?

Question 2

Refer to Figure 2-2. Suppose Vidalia is currently producing 20 dozen orchids per period. How many roses is it also producing, assuming that resources are fully utilized?
 
  A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses

[flexer1n1]

Answer to Question 1

A reduction of wages and benefits will shift the supply curve to the right, but will not shift the demand curve. This will decrease the equilibrium price and increase the equilibrium quantity in the market for airline service.

Answer to Question 2

D

[frankwu]

YES! Correct, THANKS for helping me on my review

[olderstudent]

Thanks for the timely response, appreciate it