1. Explain how each of the following events changes the demand for or supply of air travel.

• Airfares tumble, while long-distance bus fares don’t change.

• The price of jet fuel rises.

• Airlines reduce the number of flights each day.

• People expect airfares to increase next summer.

• The price of train travel falls.

• The price of a pound of air cargo increases.

Use the laws of demand and supply to explain whether the statements in Problems 2 and 3 are true or false. In your explanation, distinguish between a change in demand and a change in the quantity demanded and between a change in supply and a change in the quantity supplied.