The 9/11 terrorist attacks caused the U.S. airline travel demand
The 9/11 terrorist attacks caused the U.S. airline travel demand
Question
The 9/11 terrorist attacks caused the U.S. airline travel demand
curve to shift left by an estimated 30%. Use a supply-and-demand
diagram to show the likely effect on price and quantity (assuming
that the market is competitive. Indicate the magnitude of the
likely equilibrium price and quantity effects- for example, would
you expect equilibrium quantity to change about 30%? Show how the
answer depends on the shape and location of the supply and demand
curves
The 9/11 terrorist attacks caused the U.S. airline travel demand
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