Question

Many more people travel by aeroplane today than 10 years ago. With the help of Demand & Supply diagram, explain what might have happened in the market for air travel to cause this increase.

Answer 1

Explanation:

It is most likely that the increase in air travel over the last 10 years has been caused more by an increase in demand than an increase in supply. Supply increases if the cost of providing a good or service decreases. This is not generally the case with air travel as fuel prices have risen...