Denver Demand

In economics, demand is the quantity of a product or service that customers are willing and able to pay. Demand measures how pricing may be set. Supply, on the other hand, is the quantity of a product or service that is offered to the market by a manufacturer or service provider. The idea behind equal prices for unequal distance can make economic sense depending on the supply and demand of the trips. Even though the trip from Denver to Florida is much longer then the trip from Casper to Denver there may not be a high demand for it even though the supply of the Denver to Florida trip is equal to or greater than the supply of Casper to Denver trips. This could create a unique balance where both trips cost the same even though the distances are much different. An airline ticket price is based on many factors, such as when a traveler decides to take the trip cost of fuel, competition from other airlines. Supply, on the other hand, is the quantity of a product or service that is offered to the market by a manufacturer or service provider. From the information, the manufacturers/service supplies the quantity as demanded by the customers. Given the fact that both destinations and departures …show more content…
When one increases the other decreases. As supply grows, demand diminishes. As does the price for that product. As demand grows, supply diminishes. And price goes up. It’s a function of our market. The price is the same due to supply and demand, which is usually set by which type of airlines’ frequent certain areas, big airlines that fly to both Los Angeles and London from New York face low-fare airline competition on the domestic route, but not the international route, and so they charge far