American to Cut Flights, Charge for Luggage American Airlines announced yesterday that it will begin charging passengers

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American to Cut Flights, Charge for Luggage American Airlines announced yesterday that it will begin charging passengers $15 for their first piece of checked luggage, in addition to raising other fees and cutting domestic flights as it grapples with record-high fuel prices.

Source: Boston Herald, May 22, 2008

a. According to the news clip, what is the influence on the supply of American Airlines flights?

b. Explain how supply changes.

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Economics

ISBN: 125380

10th Edition

Authors: Michael Parkin ,Robin Bade

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