Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for flights. The accompanying table contains information on the supply of air travel. Airfare (price per ticket) Quantity supplied (millions of sales) $0 0 $175 35 $350 70 $400 80 $575 115 $750 150 Draw the supply curve and use it to calculate producer surplus last year and producer
Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for flights. The accompanying table contains information on the supply of air travel. Airfare (price per ticket) Quantity supplied (millions of sales) $0 0 $175 35 $350 70 $400 80 $575 115 $750 150 Draw the supply curve and use it to calculate producer surplus last year and producer
Chapter4: Markets In Action
Section: Chapter Questions
Problem 15SQ
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Q5 Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for flights. The accompanying table contains information on the supply of air travel.
Airfare (price per ticket) |
Quantity supplied (millions of sales) |
$0 |
0 |
$175 |
35 |
$350 |
70 |
$400 |
80 |
$575 |
115 |
$750 |
150 |
Draw the supply curve and use it to calculate
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