Between October and December, the short run demand for belly cargo space on passenger air flights from Asia to North America increases because retail distributors want to bring in popular toys for the Christmas market that will not arrive in time, if shipped by sea.

A.Draw and explain an appropriate economic model or models that illustrate(s) the impact that increase Christmas cargo demand has on freight rates and passenger ticket prices

B.Explain why airline management would resist shipper pressure to increase passenger service to serve this short run demand.