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Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026Economics: The Basics 1st Edition by Mike Mandel
Edition 1ISBN: 978-0071316026 Exercise 8
As of March 2008, only one airline (Continental) had direct flights between Newark Liberty Airport in New Jersey and Savannah, Georgia.
a) Suppose another airline started flying the same route between Newark and Savannah. Would this be a supply shift or a demand shift?
b) Show the shift on a graph.
c) How would the addition of the second airline to this route change the equilibrium price and quantity of tickets sold?
a) Suppose another airline started flying the same route between Newark and Savannah. Would this be a supply shift or a demand shift?
b) Show the shift on a graph.
c) How would the addition of the second airline to this route change the equilibrium price and quantity of tickets sold?
Explanation
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Verified
Supply curve:
The supply curve is the r...
Economics: The Basics 1st Edition by Mike Mandel
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