Order the answer to: According to the Bureau of Transportation Statistics, due to an

Assignment Help business-economics Order the answer to: According to the Bureau of Transportation Statistics, due to an

business-economics

Order the answer to: According to the Bureau of Transportation Statistics, due to an

Question According to the Bureau of Transportation Statistics, due to an increase in demand, the average domestic airline fare increased from $319.85 in the fourth quarter of 2009 to $328.12 in the first quarter of 2010, an increase of $8.27. The number of passenger tickets sold in the fourth quarter of 2009 was 151.4 million. Over the same period, the airlines’ costs remained roughly the same: the price of jet fuel averaged around $2 per gallon in both quarters (Source: Energy Information Administration), and airline pilots’ salaries remained roughly the same (according to the Bureau of Labor Statistics, they averaged $117,060 per year in 2009).
Can you determine precisely by how much producer surplus has increased as a result of the $8.27 increase in the average fare? If you cannot be precise, can you determine whether it will be less than, or more than, a specific amount?
Subject business-economics
Ready to try a high quality writing service? Get a discount here