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Introduction
Impact on the aviation industry in terms of input on market equilibrium – how price and output will change – affected by changes in demand and supply due to the above events

Main Body
1. Explain how the above events affect the demand and supply in the aviation industry – contributing to a change in the price and output

2. Explain how the above effects affect the related market
a. Complementary product – hotel accommodation

  • Economic Causation
  • Diagram
  • Description of Diagram

b. Substitutes – train and other modes of transport

  • Economic Causation
  • Diagram
  • Description of Diagram

c. Derived demand – plane manufacturers

  • Economic Causation
  • Diagram
  • Description of Diagram

Conclusion
In sum, the above impact will affect various markets as seen from how they affect the market equilibrium of the respective markets. It is critical to understand the changes in the demand and supply factors and the types of demand and supply so as to derive the interrelationship of the different markets which will affect the market equilibrium.

Simon Ng

Founder, JC Economics & General Paper Tutor at Economics Focus
JC Economics Tutor Simon Ng of Economics Focus has been teaching A Level Economics and A Level General Paper since 2003. Simon set up Economics Focus to assist students in their pursuit of academic excellence at the examination by providing economics tuition for H1 and H2 students. JC1 and JC2 students are inspired by Simon's clear teaching methods that enabled them to comprehend economics terms and concepts. Simon developed the Rational Thinking methodology to aid students to excel in their JC economics essays and CSQs.