Applying the concepts of Demand and Supply
2010 marked a trying time for the airline business. The eruption of the Icelandic volcano caused cancellations of 95,000 flights over Europe. One week later, the BP oil well exploded in the Gulf of Mexico, resulting in the worst oil spill in US history. Using economic analysis, discuss the likely impact of the above events on the airline industry and its related markets. 
What you need to know to attempt this essay question?
You must be clear on the various concepts and factors used to explain the demand and supply factors. In particular, there is the concept of market equilibrium and elasticity of demand and supply factors that affect the determination of price and output of goods and services concerned.
- Theory of Demand and Supply
- Elasticity of Demand and Supply
How to apply the knowledge to your exam preparation?
Once you have watched the video, make sure that you have understood the economics terms used. Then, set an essay outline based on the structure set in the video demonstration. With the outline, you can write a full economics essay. It is important that you complete your essay in 45 minutes, given that Paper 2 (Essay) lasts for 2 hours 15 minutes.
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