Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. assume that due to an increase in demand, the aver

Assume that due to an increase in demand, the average domestic airline fare increased from $319.85...

70.2K

Verified Solution

Question

Economics

Assume that due to an increase in demand, the average domesticairline fare increased from $319.85 in the fourth quarter of 2013to $328.12 in the first quarter of 2014, an increase of $8.27. Thenumber of passenger tickets sold in the fourth quarter of 2013 was151.4 million. Over the same period, the airlines’ costs remainedroughly the same: the price of jet fuel averaged around $2 pergallon in both quarters, and airline pilots’ salaries remainedroughly the same, averaging $117,060 per year in 2013). Can youdetermine precisely by how much producer surplus has increased as aresult of the $8.27 increase in the average fare? If you cannot beprecise, can you determine whether it will be less than, or morethan, a specific amount?

Answer & Explanation Solved by verified expert
4.5 Ratings (1139 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Under anaerobic conditions, ethanol (CH3CH2OH) is produced by the reduction of acetaldehyde (CH3COH) by molecular hydrogen...

Chemistry
Q

I need Q1,2 and 3 ASAP please, thanks 1. Identify three applications of integration. 2. Give two...

Advance Math
Q

A transfusion reaction characterized by high fever shock hemoglobinuria DIC and renal failure O AHTR...

Biology
Q

24 When two resistances are connected in parallel then the equivalent resistance is When one...

Physics
Q

Your job paid you $20,000 your first year. You are now given the choice of...

Basic Math
Q

Given tan A and that angle A is in Quadrant I find the exact value...

Algebra
Q

Gilligan Corporation was established on February 15, Year 1. Gilligan is authorized to issue 500,000...

Accounting
Q

On January 1, Year 1, Lettuce Moving Company paid $108,000 cash to purchase a truck....

Accounting
Q

The following post-closing trial balance was drawn from the accounts of Hardwood Timber Co. as...

Accounting
Q

CH 2. - 9-15 9. What were the companys predetermined overhead rates in the...

Accounting
Q

8. Reconstruct the entry for the purchase of new equipment. 9. Reconstruct...

Accounting
Q

Flounder Co. had the following transactions during the current period. Mar. 2 Issued 4,900 shares...

Accounting