In 2008 the price of jet fuel soared because of the sharp increase in the price

Question

In 2008 the price of jet fuel soared because of the sharp increase in the price of crude oil a) The oil price increase would not change the supply of airplane travel. @increase the supply of airplane travel @ decrease the supply of airplane travel b) The result of the oil price increase would cause @ no shift in the airplane travel supply curve e a leftward shift of the airplane travel supply curve @a rightward shift of the airplane travel supply curve c) The price of air travel tickets would decrease d) The quantity of air travel would Kolick to select

Explanation / Answer

(a) Option (3)

Higher oil price raises the cost of production, which decreases the supply of air travel.

(b) Option (2)

Decrease in supply of air travel will shift its supply curve leftward.

(c) Price will Increase.

(d) Quantity will decrease.

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