Supply and Demand Paper

Supply, Demand and Price Elasticity Paper
Axia College
XEco 212

In this paper we talk about how supply and demand play in how the price elastic of airline tickets.
For one to have a better understanding of what is supply and what is demand let’s look at what the definitions are for these two words so we can better see how the supply and demand effect the airline ticketing process. So first the definition for supply is: “to give, sell, or make available something that is wanted or needed by somebody or something”. (Encarta® World English Dictionary, 2009). So for airlines tickets to have a supply they has to be a need for that airline to fly to any given region or area. The supply of seats on a plane that are sold will help guide an airline in how many flights they will want to fly to and from one designation to another.
“Now let’s look at the definition for demand is: customer interest in acquiring something: the level of desire or need that exists for particular goods or services. “Demand for the model id outstripping the supply”. (Encarta® World English Dictionary,2009) So for demand by its definition plays its role in the supply chain is if they supply of that good or service is being demanded over the amount that is offered. So if a flight that has so many seats for sale the “supply” for a curtain location it will cause a greater demand for those seats in causing the price for those tickets to be raised and be sold for a higher price.
So when the demand for the tickets are needed this causes the price of elasticity to take place and allow the change in price for the supply. With this price increase would move the demand curve to the right and have an effect on the quantity of tickets that are to be sold. As the prices rise for these products it can have an effect on the sales of these goods and services. Or it will not have an effect just depends on the timing of the flights and time of year.
Other factors airlines have to look at when...