=+deadweight loss? 11. The accompanying diagram shows data from the U.S. Bureau of Labor Statistics on the average price of an airline ticket in the United States from 1975 until 1985, adjusted to eliminate the effect of inflation (the general increase in the prices of all goods over time). In 1978, the United States Airline Deregulation Act removed the price floor on airline fares, and it also allowed the airlines greater flexibility to offer

new routes.

Price of airline ticket (index: 1975 = 100)

160 140 120 100 a ee ee en es es es ne y LESLIE LIE IIE ILL Year Data from: U.S. Bureau of Labor Statistics.