How is the benefit to consumers because of increased product quality shown on the graph? And wouldn't the demand curve change because the product is different (e.g. having a piano bar vs not)?
Sir,Why would the flights need to compete for better quality if the quantity supplied is fixed? I mean as people demand exactly the same number of flights that exists at that point of time, no matter how the flights are, would not customers have to use whatever that's available for if not their demand goes unsatisfied?
Because there were multiple airlines trying to attract customers. If you own an airline and your rival is selling tickets at the same price as you, but their flights are more pleasant for passengers, then you have to either spend more to improve your passenger experience, or watch your customers switch to your rival.
I have flown a plane and this guy is false. There absolutely should be a price floor for economy tickets to raise the quality of these damn flights. This would also have the benefit of making fewer planes in the sky. Restrict entry today and force airlines to compete by quality.
Who needs a piano on an aircraft? Who needs extra leg space, when the consumer would rather have a cheaper ticket? Those savings in terms of cost cutting should be passed on to the consumer in a fashion he dictates. Overall, decisions should be left to the consumer, not the government or one of its regulatory arms. Only consumers can act in their own self interest (atleast more than the government anyway).
Try our price floors interactive practice: mru.io/n69
How is the benefit to consumers because of increased product quality shown on the graph? And wouldn't the demand curve change because the product is different (e.g. having a piano bar vs not)?
The Spanish subtitles for this video are wrong: they are from the previous video (minimum wages)
Thank you Leonardo! We will look into it.
-Roman
Sir,Why would the flights need to compete for better quality if the quantity supplied is fixed? I mean as people demand exactly the same number of flights that exists at that point of time, no matter how the flights are, would not customers have to use whatever that's available for if not their demand goes unsatisfied?
Because there were multiple airlines trying to attract customers. If you own an airline and your rival is selling tickets at the same price as you, but their flights are more pleasant for passengers, then you have to either spend more to improve your passenger experience, or watch your customers switch to your rival.
hello!
They were making huge profit as they knew during corona they can't
I have flown a plane and this guy is false. There absolutely should be a price floor for economy tickets to raise the quality of these damn flights. This would also have the benefit of making fewer planes in the sky. Restrict entry today and force airlines to compete by quality.
you can buy a business class ticket
Who needs a piano on an aircraft? Who needs extra leg space, when the consumer would rather have a cheaper ticket? Those savings in terms of cost cutting should be passed on to the consumer in a fashion he dictates. Overall, decisions should be left to the consumer, not the government or one of its regulatory arms. Only consumers can act in their own self interest (atleast more than the government anyway).
You're stupid. If the "damn" fights were hated by consumers, then they would have gone bankrupt.