Economics (AS & A Level) · May / June 2026 · Paper 31 · Question 5

During a year, airline fuel prices fell by 20.4%, while the rent of passenger aircraft increased by around 1.1%. Assuming no other changes in the passenger airline industry, what was the outcome for fixed costs and variable costs?

1. Afixed costs: decreased; variable costs: decreased
2. Bfixed costs: decreased; variable costs: increased
3. Cfixed costs: increased; variable costs: decreased
4. Dfixed costs: increased; variable costs: increased

As printed in the paper