Malaysia Airlines is the government-owned flag
carrier of Malaysia and the biggest airline company in Malaysia.
The demand of the Malaysia Airlines is increases
because it’s the most reliable airline and customers don’t have any choices to
choose the airlines. Then, the supply will increase too. Malaysia Airlines will
give more good services to the customer.
When the magnitude of an increase in demand is
smaller than the magnitude of an increase in supply, equilibrium quantity
increases and market price decreases. For example, many family will go to
travel by air transportation when the holiday. So, the demand of airlines will
increase. When the demand is changes, Malaysia airline needs to give more
service to the customer. So, the supply will also increase.
Excess
Demand (Shortage):
A situation in which consumers are willing to buy more than
producers are willing to sell. It occurs when market price is lower than
equilibrium price.
Excess
Supply (Surplus):
A
situation in which producers are willing to sell more than consumers are
willing to buy. It occurs when market price is above equilibrium price.
Source:
1: http://www.ascendworldwide.com/?sfid=70120000000tVZE&utm_term=airline%20market&gclid=CPv7uY7BorgCFUgB4godJU8A8Q
2. http://www.eturbonews.com/1135/malaysian-airlines-turns-profit-plans-fleet-r
Entry by : Chee Hau
