NavjotSingh
Hi There! I want to know why is 'D' not a correct answer. It clearly states that when airlines stop serving particular routes they shift their operations to some other route rather than reducing the operations on that route.
Let's say that one of the routes discussed in the passage is from Denver, Colorado to Queenstown, New Zealand. Several airlines offer this route initially, but then one airline reduces its prices drastically in order to drive off the other competitors.
(D) tells us that the competitors driven off of the Denver to Queenstown route don't simply offer fewer flights -- they "shift resources
to other routes." So instead of flying from Denver to Queenstown, perhaps they offer flights from Memphis, Tennessee to Siem Reap, Cambodia.
The author's argument centers on the long-term profitability of the price-gouger -- that is, the airline still offering service from Denver to Queenstown. Whether the other airlines reduce operations or shift their resources to different routes provides no information about the profitability of the price-gouging airline.
(D) does not impact the author's argument, so it can be eliminated.
I hope that helps!