Suppose there is a reduction in consumer income and an increase in the price of jet fuel, an important resource used to produce air travel. If air travel is a normal good, how will these changes influence the price and quantity of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____
a. decrease; indeterminate
b. increase; indeterminate
c. decrease; decrease
d. indeterminate; decrease
d
Economics
You might also like to view...
The demand curve for the product of a perfectly competitive firm is
A) downward sloping. B) upward sloping. C) perfectly inelastic. D) perfectly elastic.
Economics
Suppose that the technology used to manufacture laptops has improved. The likely result would be:
A. a decrease in supply of laptops. B. a decrease in quantity supplied of laptops. C. an increase in supply of laptops. D. an increase in quantity supplied of laptops.
Economics