Jetstar offers a variety of different sales throughout the year. It offers Christmas Sale fares with reduced prices of 30% for flights over the Christmas holiday period. It also offers other sales enabling customers to buy selected domestic flights for $1. Select the item from the list provided to make the following statements true. 2. With both types of sale fares, ceteris paribus, quantity demanded would have __________. 5. When compared to sale fare prices, the quantity demanded when no sales fares are available, ceteris paribus, would __________. 10. Given there is a decrease in prices with the sales promotion, ceteris paribus, how is the impact on demand described by an economist? __________ 1. Movement up and along the demand curve 2. Increased 3. Not equal 4. Shift to the left of the demand curve 5. Decrease 6. Decrease in demand 7. Shift right of the demand curve 8. Shift left of the supply curve 9. Movement both up and down along the demand curve 10. Movement down and along the demand curve 11. Not enough information to know 12. Nothing has changed
Question
Jetstar offers a variety of different sales throughout the year. It offers Christmas Sale fares with reduced prices of 30% for flights over the Christmas holiday period. It also offers other sales enabling customers to buy selected domestic flights for $1.
Select the item from the list provided to make the following statements true.
With both types of sale fares, ceteris paribus, quantity demanded would have __________.
When compared to sale fare prices, the quantity demanded when no sales fares are available, ceteris paribus, would __________.
Given there is a decrease in prices with the sales promotion, ceteris paribus, how is the impact on demand described by an economist? __________
Movement up and along the demand curve 2. Increased 3. Not equal 4. Shift to the left of the demand curve 5. Decrease 6. Decrease in demand 7. Shift right of the demand curve 8. Shift left of the supply curve 9. Movement both up and down along the demand curve 10. Movement down and along the demand curve 11. Not enough information to know 12. Nothing has changed
Solution
With both types of sale fares, ceteris paribus, quantity demanded would have increased. (Option 2)
When compared to sale fare prices, the quantity demanded when no sales fares are available, ceteris paribus, would decrease. (Option 5)
Given there is a decrease in prices with the sales promotion, ceteris paribus, how is the impact on demand described by an economist? Movement down and along the demand curve. (Option 10)
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