Substitute flying for driving to their vacation destinations

Assignment Help Business Economics

Reference no: EM13997522

A study found that lower airfares led some people to substitute flying for driving to their vacation destinations. This reduced the demand for car travel and led to reduced traffic fatalities, since air travel is safer per passenger mile than car travel. Using the logic suggested by that study, suggest how each of the following events would affect the number of highway fatalities in any one year. a. An increase in the price of gasoline b. A large reduction in rental rates for passenger vans c. An increase in airfares

Reference no: EM13997522

Questions Cloud

What are the advantages involved progressively moving : What are the advantages and disadvantages involved in progressively moving toward the infrared(Thermal) region of photon detection vs that of the standard image intensifiers technology.

Was the wage freeze example of price floor or price ceiling : During World War II there was a freeze on wages, and corporations found they could evade the freeze by providing other fringe benefits such as retirement funds and health insurance for their employees. The Internal Revenue Service went along with thi..

Do vaccines cause autism : Write five sentences about this topic. Do vaccines cause autism? How do you know that

Price maker since there are no close substitutes to product : In a Monopoly market, a firm is a price maker since there are no close substitutes to the product. You are asked to find the company’s Shut-Down, Break-Even, and Profit-Maximization points. Fixed Costs remains at $1,000.00. Graph the TC and TR on one..

Substitute flying for driving to their vacation destinations : A study found that lower airfares led some people to substitute flying for driving to their vacation destinations. This reduced the demand for car travel and led to reduced traffic fatalities, since air travel is safer per passenger mile than car tra..

Charged by the security and exchange commission : In 2006 the CEO of Bear Sterns, James Caynes, received a compensation package of $34 million. The following year Bear Sterns cost $2.7 billion to the taxpayers. Angelo Mozilo and two other top executives were charged by the Security and Exchange Comm..

User Account

All Pages