Inter-relationships between Markets - Introduction Intherealworld,.

Inter-relationships between Markets - Introduction...

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Inter-relationships between Markets Introduction In the real world, all markets are interconnected. Supply and demand analysis can be used  to explain andinter-relationships between different markets and industries. In the first example we consider an increase in the supply of low-cost flights available from airports across the United Kingdom. The market supply of flights has shifted out to the right as lost cost airlines have entered the market and existing airlines have  expanded their route network and fleet capacity. The result is a reduction in the real  price of flights to short-haul destinations in Europe. A fall in the price of airline flights increases the market demand for overseas holidays (short city breaks, package holidays for example). Assuming that British tourists can 
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  • Fall '13
  • N/A
  • Oil prices

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