Question
This week we discussed the reasons why supply and demand curves may shift. A recent example is found in a Wall Street Journal article from
This week we discussed the reasons why supply and demand curves may shift. A recent example is found in a Wall Street Journal article from July 13, 2018 titled, "Delta to Increase Fares, Trim Flights as Fuel Prices Rise."The article outlines how Delta Air Lines plans to increase fares and decrease flights because of a surge in fuel prices.
Consider the market for airline flights.
- From the title of this article and the description, does this describe a shift in the supply curve or the demand curve? In what direction?
- Which of the reasons discussed in the book and this week's lectures for shifting supply and demand curves does this event fall under?
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
