Consider the market for jet fuel in a remote regional airport. The domestic demand and supply curves

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Consider the market for jet fuel in a remote regional airport. The domestic demand and supply curves are given as (QS are gallons in thousands):

P = 55 – 3 QD P = 5 + 7 QS.

a. What is the market equilibrium price and quantity?

b. If the government imposes a price ceiling of $28, what will be the shortage of jet fuel at the airport?

c. What price floor would yield a surplus of 5,000 gallons of fuel?

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Air Transport Economics

ISBN: 9781032482538

4th Edition

Authors: Bijan Vasigh, Brian Pearce

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