Regarding Figure in the chapter, one of your fellow students says, I think the airline is making

Regarding Figure in the chapter, one of your fellow students says, €œI think the airline is making a mistake by charging students $70. It should drop the price further, so it could sell even more tickets than the 60 tickets in the figure. After all, as long as it charges even a little bit more than $40, its price will still be above its marginal cost, so it will still make a profit on each ticket.€ What is wrong with your fellow students€™argument?

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A union wage of Wa for long-haul truckers creates an excess supply of workers Wage Wage 3. Unemployed long-haul W2- truckers move to the nonuwnion short-haul market, and the labor supply curve shifts rightward wi+ В' With no labor union, both long. and short-haul truckers earn the same wage rate, W L4. pushing the short-haul wage rate down to Wa 250,0001 350,000 200,000 300,000 Number 225,000 Number of Long-haul Truckers of Short-haul Truckers