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sell at a lower price to attract more customers especially during a not-so-peak season. Thus, the demand or air tickets will increase and the airline industry will gain more profits even though the air tickets are selling at a lower price.

The last determinant is expectation on future income and future price, which means the prediction of consumers on how much they will earn and the value of a good in the future.

For example, if the economy has a positive development, where people expect a higher income in the future, they might go for a vacation and shift the demand curve of air ticket to the right. However, if they realize there will be an increase in price of air ticket in the future probably due to peak season, they will choose to purchase now then later and cause the demand curve to shift to the right.

For the other variable like tastes that can affect demand curve, we will ignore it because it is based on personal behavior and is uncertain to the airline industry.

供给曲线中的决定因素——Determinants on supply curve.

The first determinant is input prices. When the cost of producing goods increases, the supply will decrease.

In airline industry, one of the main input prices is the fuel price. As other variables are constant, when the price of fuel increases, the number of flight per day will decrease to reduce the cost of airline industry.

The second determinant is technology. A better technology can shift the supply curve to the right.

Technology advancement plays a very important role in airline industry. Airline industry is trying their best to seek for better technology in fuel conservation. Besides, they also work with airframe and engine manufacturer in designing the components of aircraft to reduce the fuel consumption of each flight. Thus, with the improvement of technology, airlines can provide more flight then before using the same amount of fuel.

The third determinant is weather. As this is air transportation, weather often becomes a big issue to the airline industry.

A heavy snow during winter, or a bad pollution, often disrupts the takeoff and landing of aircraft. Unfortunately, weather is not control by humans, the airline industry only can do their best in providing complete and safety facilities to protect their users. Although bad weather does not last very long, it does bring some effect on flight for short periods.

The last determinant is expectation on future price. When a firm expects there is a raise of price in future, they will supply less today until the price of the product increase.

In the airline industry, when they expect the price of air ticket to rise in the coming peak season that brings higher profits, they will reduce or maintain the number of flights now. Thus, when comparing the number of flights for two periods, the supply for now can said to be less compare to future.

Since airline industry undergoes the oligopoly market, the determinant of number of sellers will be excluded. Other variables like taxes and subsidies will also be excluded as they are not uncertain.

结论——Conclusion

As we can see from above, airline industry ha本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。