Explore BrainMass
Share

Explore BrainMass

    Economics: Demand, Supply and Cost Profile

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    An airline ticket costs the same from Casper, Wyoming to Denver, Colorado, and from Denver to Orlando, Florida. Does this make economic sense and if so what is rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:05 am ad1c9bdddf
    https://brainmass.com/economics/short-and-long-run-cost-functions/economics-demand-supply-and-cost-profile-567395

    Solution Preview

    In economics, demand is the quantity of a product or service that customers are willing and able to pay. Demand measures how pricing may be set. Supply, on the other hand, is the quantity of a product or service that is offered to the market by a manufacturer or service provider. From the information, the manufacturers/service supplies the ...

    Solution Summary

    The solution explores concepts of demand and supply as well as cost profile, and their applications to the question.

    $2.19