In 1994, TipTop Airlines reported an increase in the total number of passengers it carried from the year before, but a decrease in total revenues — even though prices for its tickets on all routes remained unchanged during the two-year period.

Which of the following, if true, best reconciles the apparent paradox described above?

Correct answer marked below

TipTop Airlines was a victim of a mild recession in 1994.

Total passenger miles were up in 1994.

Fuel costs remained constant during the two-year period.

Passengers traveled shorter (and thus less expensive) distances in 1994.

Correct

TipTop did not buy any new airplanes or equipment in 1994.

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What this question tests

Whether you can explain an apparent contradiction in a way that makes both facts true.

Picking an option that explains one side of the paradox while making the other side false.