User Account

All Pages

Quantity after the technological improvement

Assignment Help Business Economics
Reference no: EM131188703

(a) Consider the market for air travel. It is discovered that the demand for business class ticket is relatively more inelastic compared to the demand for economy class ticket.

(i) Assume that initially the equilibrium price and quantity of tickets for both classes are the same. Use a market diagram for air travel which illustrates both the business class and the economy class.

(ii) An improvement in the technology of air travel has occurred which affects both classes equally. Draw a suitable diagram to illustrate and discuss the effect on the equilibrium price and quantity of business class and economy class tickets. From the diagram, explain which class has a larger change in price and which class has a larger change in quantity after the technological improvement.

Reference no: EM131188703

Questions Cloud

Find a minimum of the function : Find a minimum of the function f(x) = x3/3-2x2+3x+1 on an interval [0, 3.5] Find a minimum of the function f(x, y) = x4+y4 - x2 y + x y2 numerically starting at the initial point x=1, y=0 (feel free to reuse the code from the lecture notebook)
Cobb-douglas production function : Show that if this is true (ie that both factors of production are 'rewarded' according to their marginal products) and we add together the total value of real income to all units of labour and the total value of real income to all units of capital..
Distinguish between demand-pull inflation and cost-push : Distinguish between demand-pull inflation and cost-push inflation. Which of the two types is most likely to be associated with a negative GDP gap? What is core inflation? Why is it calculated?
How you feel knowing that thousands of users simply copying : Violation of your copyright privileges, and how you feel knowing that thousands of users are simply copying and sharing your composition, for which they might have paid for otherwise.
Quantity after the technological improvement : An improvement in the technology of air travel has occurred which affects both classes equally. Draw a suitable diagram to illustrate and discuss the effect on the equilibrium price and quantity of business class and economy class tickets. From th..
What are the program goals and objectives : Brainstorm what kinds of information about crime prevention programs are of particular interest to you. You should conduct research of the program and individual you want to interview. Search the internet and your textbook and look for national an..
Travels of a t-shirt in the global economy : In this week's readings from The Travels of a T-Shirt in the Global Economy, the author describes the concept of government subsidies as "tools to help assure the financial success of cotton farmers in America."
Determine the maximum speed at which a load may be lifted : Determine the maximum speed at which a load may be lifted and the maximum load capacity (in tonnes) of the winch. Frictional losses in the winch drum itself may be neglected.
Write a memorandum addressed to dr clark : Describing an actual, real life problem in your office, school, church, or volunteer organization that you do not have the authority to correct.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd