The regulation of airline fares resulted in which of the following? I. Low-cost airlines were limited to flying across state lines.
II. Airlines offered wider seats and fancy meals to compete for fliers.
III. Fewer new airlines entered the market.
IV. Low-quality airlines went out of business.
I, II, and IV only
I and II only
I and IV only
I, II, and III only
The regulation of airline fares primarily led to a more controlled environment for airlines, which had several implications. Let's analyze each statement:
I. Low-cost airlines were limited to flying across state lines. - This statement is not entirely accurate. While regulations did affect the routes airlines could operate, low-cost airlines were not specifically limited to flying across state lines; they often operated within states as well.
II. Airlines offered wider seats and fancy meals to compete for fliers. - This statement is generally true. In a regulated environment, airlines competed on service quality rather than price, leading to better amenities.
III. Fewer new airlines entered the market. - This statement is true. Regulation made it more difficult for new airlines to enter the market due to the high barriers to entry and the need for government approval.
IV. Low-quality airlines went out of business. - This statement can also be considered true, as regulation often led to a consolidation in the industry, where only the more efficient and higher-quality airlines survived.
Based on this analysis, the correct answer would be:
I, II, and III only
However, since this option is not available, the closest correct answer based on the provided options would be:
I, II, and IV only
This is because while I is not entirely accurate, it is the best fit among the