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As part of the marketing team at a major airlines, you must Price per flight Quantity demanded per day develop a strategy to increase demand
As part of the marketing team at a major airlines, you must Price per flight Quantity demanded per day develop a strategy to increase demand for flights between two $200 1,200 mid-sized cities. You examine data from previous flights and $300 1,100 determine that the existing demand for flights between the two cities is as given in the accompanying table. $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 Price per flight Quantity demanded per day willingness to pay by $100, and 50 new customers demand $200 1,350 flights at every price. $300 1,250 - How will this affect the quantity demanded per day? $400 1,150 $500 1,050 - $600 950 $700 850P i 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. Next, plot the new demand curve from part a using D2, Again plot the end points only. Price 800 700 , 600 - 500 400 300 200 100 650 750 850 950 Quantity 1050 1,150 1.250 1,350
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