Suppose that you are the CEO of a discount airline that caters to students on tight budgets who want to travel to warm locations when the weather gets cold. Currently, your airline flies small regional jets from Columbusto 6 cities in Florida.

Using the model of supply and demand that we discussed in class think of a situation which would cause each of the following to happen:

1. The supply curve shifts inward

2. The demand curve shifts inward

3. The supply curve shifts outward

4. The demand curve shifts outward.

Briefly describe the situation and then illustrate in a separate graph for each how the curves shift and what happens to equilibrium quantity and equilibrium price. In your answers, think about what realistic situations would cause supply and demand of the product (air travel) to change.