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 generally true, as regulations often restricted the routes that new or low-cost airlines could operate.
II. Airlines offered wider seats and fancy meals to compete for fliers. - This statement is somewhat misleading. While airlines did compete for customers, the focus on luxury amenities like wider seats and fancy meals was more prevalent before deregulation. After deregulation, airlines often focused on cost-cutting measures rather than enhancing services.
III. Fewer new airlines entered the market. - This statement is true. Regulation made it difficult for new airlines to enter the market due to the high barriers to entry and the limited routes available.
IV. Low-quality airlines went out of business. - This statement can be true, as regulation could lead to inefficiencies and some airlines that could not compete effectively might go out of business.
Based on this analysis, the most accurate combination of statements that reflects the impact of airline fare regulation would be:
I, III, and IV only.
However, since this option is not provided, the closest option that includes valid statements would be I and IV only.
So, the answer