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Effect of Rising Jet Fuel Prices

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Rising jet fuel prices recently led most major U.S. airlines to raise fares by approximately 15 percent. Explain how this substantial increase in airfares would affect the following:

a. The demand for air travel.
b. The demand for hotels.
c. The demand for rental cars.
d. The supply of over-night mail.

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Solution Summary

The effects of rising jet fuel on air travel, hotels and overnight mail prices are examined clearly and concisely in 120 words.

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a. The demand for air travel.
b. The demand for hotels.
c. The demand for rental cars.

The quantity demanded for air travel, hotels and rental cars will all decrease due to ...

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