Historically, Bombardier had specialized in producing regional jets, whichare smaller short-range jets with up to 100 seats. In 2008, it secured a launchcustomer for the new CSeries, a family of 100- to 149-seat aircraft, which isscheduled to enter service in 2013. The CSeries will reduce fuel consumptionby 20% through use of advanced materials and a more fuel-efficient engine,the Pratt & WhitneyPW1000G.

(a)Draw the market demand for jet aircraft.(Hint: You are free to assume any data necessary to draw the demand.)

(b)Use your figure to explainthe relation between consumer demand for air travel and airlinedemand for jet aircraft.

(c)If travellers were less sensitive to fare increases, how would that affectthe demand for fuel-efficient aircraft?

(d)How does the price of oil affect the demand for advanced materials?