As part of the marketing team at Delta airlines, you must develop a strategy to increase demand for flights between Kansas City and Detroit. You examine data from previous flights and determine that the existing demand for flights between the two cities is as given in the accompanying table.

Price per flight	Quantity demanded per day
$200	1,200
$300	1,100
$400	1,000
$500	900
$600	800
$700	700

a. Your team launches a viral advertising campaign that is so successful that all existing consumers increase their willingness to pay by $100, and 50 new customers demand flights at every price.

How will this affect the quantity demanded per day?

Price per flight	Quantity demanded per day
$200	1,350
$300
$400
$500
$600
$700

 

b. Use the graph provided to plot the original demand curve using D1. Use the end points to plot the curve, as it will be a straight line. 800 Next, plot the new demand curve from part a using D2, 700 Again plot the end points only. 600 500 400 300 200 100 650 750 850 950 1,050 1,150 1,250 1,350 Quantity Price