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Air Travel Demand

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Rising jet fuel prices recently led most major US airlines to raise fares by approximately 15%. Explain how this substantial increase in airfares would affect the following:
1) The demand for air travel
2) The demand for hotels
3) The demand for rental cars
4) The supply of overnight mail

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The solution is very easy to understand and concise. It is an excellent response for students who want to understand the concepts and then use the same concepts to solve similar problems in the future. Overall, an excellent response.

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The rise in US airfare would cause the following effects:
1. The demand for air travel would go down. Rise in prices would lead demand to go down. ...

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