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1. The table below illustrates the demand and supplu schedules for seats on air flights between two cities:

Price. Quatity demanded. Quantity supplied

$200. 2,000. 1,200

$300. 1,800. 1,400

$400. 1,600. 1,600

$500. 1,400. 1,800

$600. 1,200. 2,000

What are the market price and equilibrium quantity in this market? Now suppose that federal authorities limit the number of flights between the two cities to ensure that no more than 1,200 passengers can be flown. Evaluate the effects of this quota if price adjusts. (Hint: What price per flight are the 1,200 passengers willing to pay?

Please back up you comments from peer reviewed articles and research on this subject. Please cite the research, as well as a reference page at the end of the assignment. The paper should be no shorter than 1 and 1/2 page. This does not include the cover page and reference gage. Remember this paper must be in APA style.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M91948122
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