Applied Problem
Not what you're looking for?
Rising jet fuels prices recently led most major U.S airlines to raise fare 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 overnight mail.
Purchase this Solution
Solution Summary
Rising jet fuels prices recently led most major U.S airlines to raise fare 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 overnight mail.
Solution Preview
A. The quantity of air travel demanded will decrease as it will cost more to fly and less individuals and businesses will have the available increased disposable income to do so.
B. The quantity of hotels demanded will decrease as travel ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.