The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada.
TABLE 3-4
-Refer to Table 3-4.Which of the following events could explain the change in the market for overnight parcel delivery between Year 1 And Year 2?

Question

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada.
  TABLE 3-4
-Refer to Table 3-4.Which of the following events could explain the change in the market for overnight parcel delivery between Year 1 And Year 2?

Quizplus · Accepted Answer

There is an increase in demand for overnight parcel delivery in Year 2 compared to Year 1, which suggests that consumer preferences changed towards a desire for overnight delivery. Other options like a decrease in the price of jet fuel, a decrease in the price of regular parcel delivery, an increase in the number of suppliers of overnight parcel delivery, or the introduction of a subsidy for overnight parcel delivery may affect the supply side of the market, but they do not explain the change in demand observed in the table.

The Table Below Displays Hypothetical Demand and Supply Schedules for the Market