After Spirit Airlines shut down on May 2, 2026, many of its passengers are stranded. Columbian airline, Avianca, has offered to fly passengers holding return tickets to their destination without charging any ticket price, depending on seat availability.—nytimes.com Use the following notation to work the questions in the multiple choice quiz below: Price — P … Continue reading Avianca Offers Free Tickets to Stranded Spirits Airlines Passengers
Category: Economics in the News-Micro
Soaring Jet Fuel Prices and U.S. Airlines
Jet fuel prices rose from $2.50 per gallon before the Iran war broke out to $ 4.13 on May 1 leading airlines to raise ticket prices and reduce the number of routes. The shock was especially severe for Spirit Airlines, which exited the market on May 2.—wsj.com and airlines.org Use the following notation to work … Continue reading Soaring Jet Fuel Prices and U.S. Airlines
Live Nation Violated Antitrust Laws
A federal jury found that Live Nation, owner of Ticketmaster, acted as a monopoly, overcharging $1.72 per ticket. It pressurized venues to use Ticketmaster for ticket sales. It controls 70% of government-identified major venues and 86% of ticket sales. A breakup may be proposed.—nytimes.com
Fast Food Wage Policy
In California, the FAST Act set the minimum wage at $20 per hour for fast-food workers.—calmatters.org
Live Nation’s U.S. Monopoly Case
Live Nation dominates the live event ticket market and charges exorbitant fees partly because many venues must arrange ticket sales through its platform. A government settlement now requires venues to be free to work with other ticketing companies. —ft.com
The Strait of Hormuz and the Global Oil Market
War in the Middle East has severely reduced tanker traffic through the Strait of Hormuz, a route that carries about one-fifth of the world’s oil, raising fears that Iran could close the vital oil shipping route. —bbc.com
Production Possibilities Frontier and War
War between Israel, the United States, and Iran has damaged civilian infrastructure and killed civilians as missile and drone attacks spread across the Middle East.—ft.com Assumption: The world economy uses all available resources.
Coal Electricity and Pollution
In 2012, the EPA introduced Mercury and Air Toxics Standards (MATS), which require pollution-control equipment to limit toxic air pollution from coal power plants. In 2026, the EPA proposed repealing parts of MATS, saying the rules raise electricity costs and limit supply. Critics warn that removing the rules will harm public health.—eia.gov and wri.org
Labor Supply and the Dutch Economy
In the Netherlands, four-day workweeks are common. Dutch employees work an average of 32.1 hours per week, well below the EU average of 36 hours. The country also has one of the highest incomes per person in Europe. Higher wages are leading Dutch workers to trade additional income for leisure.—bbc.com
Rafael Nadal’s Performance Measured by Elo Ratings
Nadal, 39, retired in November 2024 after years of battling injuries that ultimately ended hopes of extending one of the most decorated careers in tennis history. —dailysabah.com, December 15, 2025 Elo points measure how strong a player is based on match results. Beating stronger opponents increases Elo points more, while losing to weaker opponents decreases … Continue reading Rafael Nadal’s Performance Measured by Elo Ratings