Price Elasticity of Supply and Demand in the Airline Industry
Select an industry that is affected by the economy. "Airline"
Research how a current or past event in the industry has caused shifts with the price elasticity of supply and demand. Summarize your research.
Research whether the industry produces public goods or private goods, and whether or not the goods are common resources. Summarize your research.
Find two sources to help you answer the following problems about the industry you chose:
1. In your chosen industry, is price elasticity of demand considered elastic or inelastic? Are there substitutes available? Is the good a luxury or a necessity? describe.
2. What is the price elasticity of supply for your chosen industry? describe.