Asked by Dolly Rodriguez on Apr 29, 2024
Verified
The market price of airline flights increased recently.Some economists suggest that the price increased because of an increase in the number of business travelers.They believe that,in the market for flights:
A) supply increased.
B) supply decreased.
C) demand increased.
D) demand decreased.
Airline Flights
Scheduled air services for transporting passengers and goods.
Business Travelers
Individuals who travel for work-related purposes, often involving trips to different cities or countries for meetings, conferences, and corporate events.
Market Price
The ongoing rate at which a service or asset is available for sale or purchase.
- Determine the influence of outside occurrences on the balance between market demand and supply (price and quantity).
- Grasp the dynamics between variations in income and the appeal of normal versus inferior commodities.
Verified Answer
JH
julia hurlburtMay 06, 2024
Final Answer :
C
Explanation :
An increase in the number of business travelers would represent an increase in demand for flights, as those travelers are now competing with the existing demand from leisure travelers for a limited supply of seats on airplanes. This would lead to an increase in price, as airlines can charge more due to the higher demand. Therefore, choice (C) is the best option.
Learning Objectives
- Determine the influence of outside occurrences on the balance between market demand and supply (price and quantity).
- Grasp the dynamics between variations in income and the appeal of normal versus inferior commodities.
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