Write a two to three (2-3) page paper in which you:

Identify a relevant economic article from...

Question

Write a two to three (2-3) page paper in which you:

Identify a relevant economic article from either the Strayer Library or a 
newspaper. The article must deal with any course concepts covered in Weeks 
1-4.
In the first two (2) paragraphs, identify at least four (4) key points that 
the article highlights.
In the next three to five (3-5) paragraphs, apply two (2) of the following 
economic concepts (supply and demand, market structures, elasticity, and costs 
of production) to the key points that you highlighted in Question 2.
In your concluding paragraph, state whether you agree or disagree with the 
author’s comments. Provide a rationale for the response.
Use at least three (3) quality resources in this assignment with one (1) 
being your article.
Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch 
margins on all sides; citations and references must follow APA or 
school-specific format. Check with your professor for any additional 
instructions.
Include a cover page containing the title of the assignment, the student’s 
name, the professor’s name, the course title, and the date. The cover page and 
the reference page are not included in the required assignment page 
length.
The specific course learning outcomes associated with this assignment 
are:

Apply the underlying principles of economics and the economic way of 
thinking to assess market issues and make business decisions.
Analyze the dynamics of supply and demand to anticipate market 
equilibrium.
Analyze the elasticity of demand and supply and its importance, and the 
effect of taxes or other public policies
Describe the impact of various forms of competition on business operations 
with emphasis on perfect competition.
Use technology and information resources to research issues in principles of 
economics.
Write clearly and concisely about principles of economics using proper 
writing mechanics.
Grading for this assignment will be based on answer quality, 
logic/organization of the paper, and language and writing skills, using the 
following rubric found here.

Robert · Accepted Answer

The article chosen is –‘Low-cost air fares: How ticket prices fall and rise’, from BBC news ( link given above). The article highlights the following points:
· Prices in the airlines industry are extremely flexible.
· Airlines attempt to fill seats rather than maximise profits.
· The gap between prices for ‘full airline’ tickets are ‘low cost airline’ tickets is much lesser now.
· A low cost airline must not be equated with a low fare airline. 
The article talks about the airline industry in Europe which sees intense competition in peak season for customers. This industry has low cost airlines (like RyanAir) as well as regular airlines like Virgin and British Airways. This distinction is based on costs of operation, rather than the fare offered. It is possible for a regular airline to offer a ticket, which is cheaper than of a low cost airline for the same route.  This has led to lower differential price for tickets offered by both types of airlines. Economic theory can be used to explain this development. Another major point that is highlighted is that prices are very flexible, as they are constantly changing on the basis of demand and bookings of rival airlines. This is against the norms of prices rising as the date and time of a flight approaches. These norms meant that the earlier you book cheaper are the tickets. This no longer holds true now. It is possible to book a flight at a cheaper price on a day that is closer to departure date. We will consider the reasons for this also.  
ANALYSIS:
Price is determined by two factors,

Write a two to three (2-3) page paper in which you: Identify a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks...

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