1. What are direct and indirect economic impacts related to air transportation a

1. What are direct and indirect economic impacts related to air transportation and how do they differ? Provide an example of each.
2. Mergers have been an important part of the airline industry. Have they been successful?
3. Explain what the concept of opportunity cost means in economics.
4. How do individuals and firms generally make decisions concerning economic situations?
5. What are the main differences between micro and macroeconomics?
6. What are some of the main problems associated with total government regulation of the aviation industry?
7. What is the price elasticity of demand? Please provide some examples of products that have an elastic, and those with inelastic demands, and explain your reasoning.
8. What are the factors that influence the elasticity of demand for pilots?
9. With changes in fuel prices what kind of effects should we see in the market for air travel?
10. What is the difference between economies of scale and economies of scope?
11. Define and compare historical, replacement, and sunk costs.
12. Define peak-load pricing and provide at least two examples.
13. What is the main problem with average cost pricing?
14. Discuss the advantages and disadvantages of price discrimination for airlines and passengers.
15. Suppose JetBlue raises the ticket price by 6% and the ASM decreases by 3%. Is the price elasticity of supply elastic, unit elastic, or inelastic? Why?