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 accurate. While there were regulations, low-cost airlines were not specifically limited to flying across state lines; they could operate in various markets.
II. Airlines offered wider seats and fancy meals to compete for fliers. - This statement is generally true. In a regulated environment, airlines often competed on service quality, leading to more 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 barriers such as obtaining routes and operating certificates.
IV. Low-quality airlines went out of business. - This statement can also be considered true, as the regulation helped to stabilize the industry, leading to the exit of less competitive airlines.
Based on this analysis, the correct answer would be:
I and III only
However, since that option is not provided, the closest correct answer based on the implications of regulation would be I, II, and III only.
If you need to choose from the provided options, the best fit would be I, II, and III only.