© Marek Slusarczyk/Alamy

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Read our full range of US High School economics picks here.


  • Price controls

Click to read the article below and then answer the questions:

Europe’s airlines clash with Italian premier over planned fare cap

  • What happened to the price of tickets from mainland Italy to the islands of Sicily and Sardinia? 

  • What market shifts (supply or demand) would explain this change in equilibrium price? 

  • The Italian plan would cap prices during the high season at 200 per cent of average prices. Why do you think the price cap proposal allows a higher than average price during the high season?

  • Draw a market with an effective price ceiling. How does quantity demanded compare to quantity supplied? What is the difference called?

Ariel Slonim at MRU Econinbox

Copyright The Financial Times Limited 2024. All rights reserved.
Reuse this content (opens in new window) CommentsJump to comments section

Follow the topics in this article


Comments have not been enabled for this article.