Students also viewed
Sets found in the same folder
Other sets by this creator
Assume that due to a decrease in demand, the average domestic airline fare decreased from in the third quarter of 2015 to in the fourth quarter of the same year, a decrease of . The number of passenger tickets sold in the third quarter was million and million in the fourth quarter. Over the same period, the airlines' costs remained roughly the same: the price of jet fuel averaged around $2 per gallon in both quarters, and airline pilots' salaries remained roughly the same, averaging $117,290 per year in 2015).
Can you determine precisely by how much producer surplus has decreased as a result of the $9.16 decrease in the average fare? If you cannot be precise, can you determine whether it will be less than, or more than, a specific amount?
Determine the trend percents for the following accounts, using 2013 as the base year (round the percents to whole numbers). State whether the situation as revealed by the trends appears to be favorable or unfavorable for each account.
|Cost of goods sold||128,200||122,080||115,280||106,440||67,000|