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Business, 05.03.2021 05:10 SKYBLUE1015

(Problem 3c.) The market for many goods changes in predictable ways according to the time of year, in response to events such as holidays, vacation times, seasonal changes in production, and so on. Using supply and demand, explain the change in price in the following case. Note that supply and demand may shift simultaneously. The price of a round-trip ticket to Paris on Air France falls by more than $200 after the end of school vacation in September. This happens despite the fact that generally worsening weather increases the cost of operating flights to Paris, and Air France therefore reduces the number of flights to Paris at any given price. This would occur if demand ___ and supply ___ and the decrease in ___ was larger.

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