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A new tax on airline tickets has raised concerns the European airline traffic will fail. Show the
effect on airline ticket prices and quantity demanded. Show the shift of supply and/or demand
curves and explain why the curve(s) shifted.
Solution
Due to rise new tax, the price of European airline ticket will increase, due to increase price of
airticket the demand will decrease .but due to increase in price supply will increase.
Sorry not able to attache image

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A new tax on airline tickets has raised concerns the European airlin.pdf

  • 1. A new tax on airline tickets has raised concerns the European airline traffic will fail. Show the effect on airline ticket prices and quantity demanded. Show the shift of supply and/or demand curves and explain why the curve(s) shifted. Solution Due to rise new tax, the price of European airline ticket will increase, due to increase price of airticket the demand will decrease .but due to increase in price supply will increase. Sorry not able to attache image