Prices of commercial airline tickets (assume that this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen
Which of the following best explains the falling prices of airline tickets?
A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right.
B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left.
C) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left.
D) The demand curve and the supply curve for airline tickets have both shifted to the right.
B
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GDP can increase from one year to the next by:
A) increases in prices while quantities of goods and services are constant. B) increases in the quantities of goods and services produced while prices remain constant. C) both prices and quantities of goods and services increase. D) all of the above.
If the price of gloves increases, total expenditures on gloves will decline if
a. the demand for gloves is inelastic. b. the demand for gloves is elastic. c. the quantity of gloves purchased is unresponsive to changes in price. d. there are few good substitutes for gloves.