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Business, 20.09.2019 23:20 abolton04

Assume that due to a decrease in demand, the average domestic airline fare decreased from $371.72 in the third quarter of 2015 to $362.56 in the fourth quarter of the same year, a decrease of $9.16. the number of passenger tickets sold in the third quarter was 183.9 million and 175.9 million in the fourth quarter. over the same period, the airlinesā€™ costs remained roughly the same: the price of jet fuel averaged around $2 per gallon in both quarters, and airline pilotsā€™ 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?

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