Many airlines have not reduced or eliminated fuel surcharges despite the price of oil dropping. A logical reason for this is that the decline in fuel prices
A) shifted the supply curve for airline tickets to the left, and at the same time an increase in demand for airline tickets shifted the demand curve to the right, so prices did not decline.
B) shifted the supply curve for airline tickets to the right, and at the same time a decrease in demand for airline tickets shifted the demand curve to the left, so prices still increased.
C) shifted the supply curve for airline tickets to the right, and at the same time an increase in demand for airline tickets shifted the demand curve to the right, so prices still increased.
D) shifted the supply curve for airline tickets to the left, and at the same time a decrease in demand for airline tickets shifted the demand curve to the left, so prices did not decline.

Question

Quizplus · Accepted Answer

The decline in fuel prices would typically shift the supply curve to the right, indicating a potential for lower prices. However, if there is also an increase in demand, shifting the demand curve to the right, prices can still increase or remain stable despite the lower fuel costs.

Many Airlines Have Not Reduced or Eliminated Fuel Surcharges Despite