The document discusses how different scenarios would impact supply and demand curves for airlines. It asks students to identify which elements of the PEST analysis framework (political, economic, social, technological) would be affected by scenarios such as a fuel cost increase, an airline merger, predicted increased summer travel, and new regulations. The document also prompts students to draw supply curve shifts on whiteboards for each scenario.

1. Bellringer
03/31/2014
On White boards
1. What does the acronym TRIBE stand for, and which
economic law does it apply to?
2. What does the acronym PEST stand for? And which
economic law does it apply to?

2. White boards
Which part of PEST will
change in the following
scenarios to the Airline
market?
1. The cost of fuel goes up by 10%
2. US Airways and American Airlines Merge
3. Managers predict that many people will fly during
summer vacation
4. US Airways develops the first every robotic flight
attendant
5. The government places a regulation on flying limiting
flights to three flights per day
6. Average price of rent at an airport decrease

3. White boards
Show the supply curve shift
for the following scenario
1. US Airways and American Airlines Merge
S₁
$ per
input
Q*Supplied
S₂

4. White boards
Show the supply curve
shift for the following
scenario
• The cost of fuel goes up by 10%
S₁
$ per
input
Q*Supplied
S₂

5. White boards
Show the supply curve shift
for the following scenario
• Managers predict that many people will fly during
summer vacation
S₁
$ per
input
Q*Supplied
S₂

6. White boards
Show the supply
curve shift for the
following scenario
• US Airways develops the first every robotic flight
attendant
S₁
$ per
input
Q*Supplied
S₂

7. White boards
Show the supply curve
shift for the following
scenario
• The government places a regulation on flying limiting
flights to three flights per day
S₁
$ per
input
Q*Supplied
S₂

8. White boards
Show the supply curve shift
for the following scenario
• Average price of rent at an airport decrease
S₁
$ per
input
Q*Supplied
S₂

9. Jet Fuel