How lower airfare between paris and london impact the market

Assignment Help Macroeconomics
Reference no: EM13233792

"The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, Jean-Louis Raymond, blamed cut-throat competition from budget airlines." (News story, January 2005)

a. If Mr. Raymond is correct, are the services of airlines and Eurotunnel substitutes or complements?

b. Use demand and supply analysis to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.

Reference no: EM13233792

Questions Cloud

Identify what hr mechanisms can be introduced : Identify what HR mechanisms can be introduced in the international firm today to build a strategic business partnership.
What is the mass of the second snowball : During a snowball fight, two snowballs travelling towards each other collide head-on. The first is moving east at a speed of 15.3 m/s and has a mass of 0.450 kg, What is the mass of the second snowball
Define what temperature would the permeability be higher : PET has a permeability to carbon dioxide of 0.227x10^-13(cm^3 x cm)/(cm^2 x s x Pa) at 25 C. Given that the activation energy for permeability is 27 kJ/mole, at what temperature would the permeability be ten times higher
Identify and describe a current situation : Identify and describe a current situation, within your current or former organization, where the challenges of the process of change.
How lower airfare between paris and london impact the market : "The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief e..
What are meditech problems in introducing new products : What are Meditech's problems in introducing new products? In manufacturing ALL products?
Evaluate the thermodynamic equilibrium constanst : Carbon dioxide dissolves in water to form carbonic acid. Estimate the thermodynamic equilibrium constanst (K) for this reaction (delta Gf values: H2CO3= - 616.1, H2O= - 237.1, CO2= - 394.4) .
Calculate the x and y components : Two test charges are located in the x-y plane. If q1 = -2.30 nC and is located at x = 0.00 m, y = 1.040 m and the second test charge has magnitude of q2 = 4.00 nC and is located at x = 1.20 m, y = 0.750 m, calculate the x and y components
How an individual will gain by choosing air travel : An airline ticket from Baltimore to Miami costs $525. A bus ticket is $325. Traveling by plane will take 5 hours, compared with 25 hours by bus. Thus, the plane costs $200 more but saves 20 hours of time

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain is the federal funds rate currently too high

Suppose that the economy is thought to be 2% above potential (that is, the output gap is 2%) when potential output grows 4% per year. Suppose also that the Fed is following the Taylor rule, with an inflation rate of 2% over the past year.

  Economists also businesses almost always compare costs

Economists also businesses almost always compare costs and benefits in their decision making.

  Suppose that the airplane can be purchased from an outside

Suppose that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision.

  How much will rachel save during her working period

Rachel earns nothing during her learning period, 600 during her working period, and 300 during her retirement period. She has no initial assets. The real interset rate is 0.25. Rachel is not allowed to borrow by the banks.

  Proide that the economy grows is allowed to grow

Proide that the economy grows is allowed to grow through the banking system and the creation of money through lending.

  A famous quarterback quite signed contract providing

A famous quarterback quite signed a $15 million contract providing $3 million a year for 5 years suppose that he gets paid at the end of each year.

  Elucidate what factors besides your quantitative analysis

Elucidate what factors besides your quantitative analysis should be considered in making this decision.

  Explain how regular and lasting were the past trends

Explain how regular and lasting were the past trends. What are the chances of these patterns are changing. How accurate is the historical date that we use in time series.

  What does tax agreement suggest about possibility of crowdin

President Obama recently agreed in December with Republicans in Congress to extend existing tax cuts that were scheduled to expire December 31 and to create new tax cuts as well. Meanwhile, recent reports suggest that the economy may expand more.

  Provide examples of microeconomics and macroeconomics

Assume you were doing lunch with your best friend who just enrolled in an economics class. He was complaining about how irrelevant the class was,

  How to determine the optimal level of pollution

Give me some information on taxing pollution. Discuss it using the ideas of externality, supply, and demand. How do we determine the optimal level of pollution? Is the optimal level of pollution zero Why or why not

  Explain why the growth rate have changed recently

How have these aggregates been growing in the past year compared with the value if you can, download the data from the internet , or enter them by hand into a spreadsheet, and see if you can plot the data to compare.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd