Economics 9708 · AS & A Level · 7.5

7.5 — practice question

During the year ending July 2016, airline fuel prices decreased by 20.4% whereas the price of passenger aircraft rose by about 1.1%. If nothing else changed in the passenger airline industry, what happened to fixed costs and variable costs?

  • Afixed costs decreased; variable costs decreased
  • Bfixed costs decreased; variable costs increased
  • Cfixed costs increased; variable costs decreased
  • Dfixed costs increased; variable costs increased

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