More people travel by airplane today than 10 years ago. Using supply and demand analysis, explain what might have happened in the market for travel to cause this increase.

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In order for the amount of air travel to rise, supply must rise, demand must rise, or both.  It is most likely that the increase in air travel over the last 10 years has been caused more by an increase in demand than an increase in supply.

Supply increases if the cost of providing a good or service decreases.  This is not generally the case with air travel as fuel prices have risen...

(The entire section contains 209 words.)

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