Occasionally an airline will lose a bag. Suppose a small airline has found it can
reasonably model the number of bags lost each weekday using a Poisson model with a mean of 2.2 bags.
(a) What is the probability that the airline will lose no bags next Monday?
(b) What is the probability that the airline will lose 0, 1, or 2 bags on next Monday?
(c) Suppose the airline expands over the course of the next 3 years, doubling the number of eights it makes,
and the CEO asks you if it's reasonable for them to continue using the Poisson model with a mean of 2.2. What is an appropriate recommendation? Explain.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.