Question

Assume that the top executives of the major airlines meet and agree to reduce the number of flights as a means of reducing the supply of available seats, thereby allowing them to charge higher fares for those seats. What type of regulatory problem does this example most clearly represent?

Answer 1

Answer:

restraint of trade

Explanation:

Restraints of trade can be defined as any type of interference existing that put a hold of free competition in a market, trade or in a profession. This term limits the riots that someone has to carry on or go about his business. By reducing the flight numbers so as to reduce the number of available seats to increase the fares, this shows the regulatory problem called restraint of trade.