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
This is helpful! Thanks! :D
ReplyDeleteWhat are the factors that affect the shifting of Aggregate Demand and Aggregate Supply ..?
ReplyDeleteFactors will shift the Aggregate Demand curve are
ReplyDeleteConsumer Spending/ Expenditure (C).
Investment Expenditure (I).
Government purchase (G) and
Net exports (X-M).
(C)When consumer wealth which cause households willing to purchase more AD shift to the right.
When consumer expect higher income and prices in the future, they will increase the consumption and leads the AD curve shifts to the right.
When households borrowing is easier, it shifts the AD curve to the right.
(I) Higher interest rates will cause investment to fall and shift the AD to left.
If firms expect their profits will increase in the future, they will invest more, AD to shift to right.
(G)Higher government spending will shift AD curve to the right.
Lower government spending will shift AD curve to the left.
(X-M) A fall in our currency means that RM has decreased in price. (Depreciation of RM). Export prices will be lower, import prices will be higher.
As a result, exports rise, imports fall. Net export rises. This will shift the AD curve to the right.
A rise in our currency means that RM has increased in price. (Appreciation of RM). Export prices will be higher, import prices will be lower.
As a result, exports fall, imports rise. Net export falls. This will shift the AD curve to the left.
Factors will shift the Aggregate Supply Curve are
Change in input prices. (Resources prices)
Change in Productivity
Change in Business taxes and subsidies and government regulation.
If price of resources rise, the cost of production will rise, it will shift the AS curve to the left. Vice versa.
If productivity of resources rise, the cost of production will fall, it will shift the AS curve to the right. Vice versa.
If business taxes rise, cost of production will rise, it will shift the AS curve to the left.
If subsidies are given, cost of production will fall, it will shift the AS curve to the right.
Factors shifting the AD and AS ? Ok here you go
ReplyDeleteFor AD:
- Real Wealth effect
- Interest rate effect
- Foreign purchase effect
For AS:
- Changes in input prices
- Changes in productivity
- Changes in legal- constitutional environment
How do the changes in Supply and Demand affect the equilibrium quantity in the market ?
ReplyDeleteHigher demand leads to higher equilibrium price and higher equilibrium quantity.
ReplyDeleteHigher supply leads to lower equilibrium price and higher equilibrium quantity.
Lower demand leads to lower price and lower quantity exchanged.
Lower supply leads to higher price and lower quantity exchanged.