The industry that I have chosen to research is the airline industry. I have learned quite a bit of information about how the airlines work and how what they do affects the economy. The airline industry is very complex when it comes to shifts in supply and demand, externalities, wage inequality and monetary and fiscal policies. The airline industry is an industry that even they can not explain how it works. I have found so much information regarding the industry and how it works. The airline industry is deeply impacted by the elasticity of demand, externalities, wage inequality, and monetary, fiscal, and federal policies. The elasticity of demand is based purely on current market conditions, the customers purpose for travel, and available substitutes. Externalities continue to influence the elasticity of demand. The September 11th tragedy had a negative affect on the entire travel industry. It impacted the fiscal and monetary policies, supply and demand, and it created staffing problems nationwide. The rate of wage inequality is improving due to legislation that has creat......

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