Andyboi Posted September 25, 2012 Report Share Posted September 25, 2012 i dont think it would be cost-push because supply is not really affected but i dont think its demand-pull either because that doesn't seem like it would make sense.... help anyone? I'll love you forever! :* Reply Link to post Share on other sites More sharing options...
CkyBlue Posted September 26, 2012 Report Share Posted September 26, 2012 Ok... if you read the questions...it says higher demand...higher demand...why wouldn't it be demand pull inflation?My economics is a bit rusty, and I think there was a third type, but this seems sufficing. Reply Link to post Share on other sites More sharing options...
Kuro Posted September 26, 2012 Report Share Posted September 26, 2012 it makes perfect sense to name it demand-pull, unless there are some info that we don't know about, than Your topic has the answer written in it "due to a higher demand" Reply Link to post Share on other sites More sharing options...
IB Failing Posted September 28, 2012 Report Share Posted September 28, 2012 As stated above, it's related to demand. Although, why is the question referring to inflation when it only concerns a certain price (air fares), and not CPI. Demand-pull inflation is due to increased AD, but I would've thought that an increase in airline prices was simply due to an increase in demand. But to be honest, I'm not sure what less discounting would do, but it all seems related to Micro rather than Macro. As you've said, it doesn't seem to make sense . Reply Link to post Share on other sites More sharing options...
IB231997 Posted October 2, 2012 Report Share Posted October 2, 2012 demand pull inflation Reply Link to post Share on other sites More sharing options...
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