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With the tougher licensing regulation, the supply of airline pilots has decreased, leading to higher costs for airlines. This results in higher airline ticket prices
With the tougher licensing regulation, the supply of airline pilots has decreased, leading to higher costs for airlines. This results in higher airline ticket prices for consumers (flyers). The quantity of airline trips (flights) may also decrease due to the limited availability of pilots. Consumer surplus for flyers decreases as they have to pay higher prices for their trips. Producer surplus for airlines decreases due to increased operating costs
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