Assignment on Markets Spring 2017Southwest Airlines and the expansion of the Hobby airport international terminal.
Based on the information provided below and your additional research ifappropriate answer the following questions:
1. What is the current level of competition on short haul international routes inHouston? Provide data to support your answer. (10pts)
2. Using the model of supply and demand represent the expected changes inthe market for short haul international air travel as Hobby airport expands toinclude an international terminal and Southwest Airlines provides flights onshort international routes. (60 pts)
a. Find the factors that would lead to a change in demand and/or supply.
b. Describe the new market equilibrium (price and quantity)
c. Does the new equilibrium match the expected result of the expansionaccording to the report of the director of aviation Houston AirportSystem? Provide data to support your answer.
3. Use your knowledge of supply and demand to explain why United Airlinesopposed the expansion plan by Southwest airlines. (15 pts)
4. Find supporting evidence that competition makes markets more efficient inthis case. (15pts)
*Please use Microsoft word or pdf format and MLA format for this writing
*Should you desireto use a graph and use of excel is not an option you may hand graph(s) and then scan and attach it in the proper place in your paper.
*The length of the paper should be maximum of500words (about two pages maximum).
*Your conclusion may differ from the actual result of the study presented below; as long as you provide a soundECONOMICanalysis to support your conclusion. Please avoid summarizing the articles.
*All papers will be checked against internet sources for plagiarism and if the result is positive author(s) will be given a grade of zero for the paper and may receive anFfor the course.