Final answer:
United Airlines is likely working on a 3) pricing model. The changes in jet fuel prices would have increased the operating costs leading to a higher equilibrium price for air travel, potentially reducing the number of flights offered.
Step-by-step explanation:
To develop a pricing model, United Airlines may use executive judgments, surveys of buyers or sales personnel, time-series analyses, correlation analyses, and market tests. A pricing model is a scheme or method used to determine the best price for a product or service. This can include analyzing various factors that impact prices such as supply and demand, competition, and cost of goods sold. United Airlines, being a major player in the air travel market, would also consider the impact of external factors such as fuel prices on their pricing strategy.
A detailed design of a product, like an airplane, involves not only understanding the market analysis but also the shapes and dimensions of all physical components. This is essential for companies like HighFlyer Airlines which aims to improve the passenger experience through enhanced cabin space. This modification has significant implications for many other aspects of aircraft design, such as engine and luggage placement and the overall aerodynamic profile of the plane.
Considering the increase in jet fuel prices, which went up by approximately 47% from August 2014 to January 2015, we can use a four-step analysis to predict that this cost increase likely led to an increase in operating costs for airlines. Consequently, airlines might have raised airfares to maintain profitability, thereby affecting the equilibrium price and quantity of air travel. The higher costs of operation could have reduced the supply of air travel services, shifted the supply curve to the left, and, in turn, increased the equilibrium price of air tickets while decreasing the equilibrium quantity.