If Canadians suddenly develop a strong urge to escape the cold winter by taking vacations in:

a) initial result of the change is a surplus of vacations in Hawaii, leading to a price rise.
b) price of airline tickets falls as ticket agents make deals in response to this change.
c) price of luggage will rise, because luggage and vacations are complements.
d) price of a vacation in Hawaii rises and the quantity demanded of Hawaiian vacations decreases.
e) price of a skiing vacation in the mountains rises.

Ans: c) price of luggage will rise, because luggage and vacations are complements.

Business

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