1. Explain how each of the following events changes the demand for or supply of air travel....
Question:
1. Explain how each of the following events changes the demand for or supply of air travel.
? Airfares tumble, while long-distance bus fares don?t change.
? The price of jet fuel rises.
? Airlines reduce the number of flights each day.
? People expect airfares to increase next summer.
? The price of train travel falls.
? The price of a pound of air cargo increases. use the laws of demand and supply to explain whether the statements in problems 2 and 3 are true or false. in your explanation, distinguish between a change in demand and a change in the quantity demanded and between a change in supply and a change in the quantity supplied.
2. The United States does not allow oranges from brazil (the world?s largest producer of oranges) to enter the united states. If Brazilian oranges were sold in the united states, oranges and orange juice would be cheaper.
3. If the price of frozen yogurt falls, the quantity of ice cream consumed will decrease and the price of ice cream will rise.
4. Table 1 show the demand and supply schedules for running shoes. What is the market equilibrium? if the price is $70 a pair, describe the situation in the market. Explain how market equilibrium is restored. If a rise in income increases the demand for running shoes by 100 pairs a day at each price, explain how the market adjusts to its new equilibrium.
5. ?as more people buy fuel-efficient hybrid cars, the demand for gasoline will decrease and the price of gasoline will fall. the fall in the price of gasoline will decrease the supply of gasoline.? is this statement true? Explain.
6. OPEC deadlocked on oil production hike oil prices breached the $100-a-barrel mark Wednesday after OPEC said it could not reach an agreement about raising crude production.