What is the effect on price and quantity on flight tickets when the oil price has increased.
When oil price increased, the cost of production for plane company increase and supply will shift left. When supply sift left the price will increase and quantity will decrease.
ML
Related Economics A Level answers
All answers ▸Why do markets fail?
Why is the demand for a Ford Car more 'elastic' than the demand for petrol?
What is the effect of an increase in supply on the economy?
In a perfectly competitive labour market, explain how equilibrium wages are determined by the forces of supply and demand.