Final answer:
The increase in the price of jet fuel will decrease the supply of jet fuel, resulting in an increase in the equilibrium price of air travel and a decrease in the equilibrium quantity.
Step-by-step explanation:
The increase in the price of jet fuel will affect the supply of jet fuel. When the price of jet fuel increases, it becomes more expensive for airlines to purchase fuel, which decreases the supply of jet fuel. This is represented by a leftward or upward shift in the supply curve.
As a result of the decrease in the supply of jet fuel, the equilibrium price of air travel will increase, as airlines will need to pass on the increased cost of fuel to passengers. The equilibrium quantity of air travel will decrease, as fewer people will be willing or able to afford the higher prices.
In summary, the correct answer is option c. The supply of jet fuel will decrease.