16. If the price of domestic airline tickets increases, then, ceteris paribus: A the demand for domestic air travel will increase. B the demand for car rentals, a complement in consumption, will increase. C the demand for domestic air travel will decrease. D the demand for car rentals, a complement in consumption, will decrease. E the demand for car rentals, a substitute in consumption, will decrease. 17. Market demand A shows how much an individual is willing and able to consume at each and every price. B is the horizontal summation of all the individual demand curves in a market. C is the vertical summation of all the individual demand curves in a market. D isa positive slope. E shows how much individuals are willing to supply at each and every price. 18. In the market for air travel, which of the following variables would decrease demand, ceteris paribus? A An increase in rental rates for hired cars, a substitute B A rise in income of tourists C Arise in the price of air travel D Arise in the price of hotel accommodation, a complement E A drop in the price of air travel

16. If the price of domestic airline tickets increases, then, ceteris paribus: A the demand for domestic air travel will increase. B the demand for car rentals, a complement in consumption, will increase. C the demand for domestic air travel will decrease. D the demand for car rentals, a complement in consumption, will decrease. E the demand for car rentals, a substitute in consumption, will decrease. 17. Market demand A shows how much an individual is willing and able to consume at each and every price. B is the horizontal summation of all the individual demand curves in a market. C is the vertical summation of all the individual demand curves in a market. D isa positive slope. E shows how much individuals are willing to supply at each and every price. 18. In the market for air travel, which of the following variables would decrease demand, ceteris paribus? A An increase in rental rates for hired cars, a substitute B A rise in income of tourists C Arise in the price of air travel D Arise in the price of hotel accommodation, a complement E A drop in the price of air travel

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

16. If the price of domestic airline tickets increases, then, ceteris paribus:
A the demand for domestic air travel will increase.
B the demand for car rentals, a complement in consumption, will increase.
C the demand for domestic air travel will decrease.
D the demand for car rentals, a complement in consumption, will decrease.
E the demand for car rentals, a substitute in consumption, will decrease.
17. Market demand
A shows how much an individual is wiling and able to consume at each and every price.
B is the horizontal summation of all the individual demand curves in a market.
C is the vertical summation of all the individual demand curves in a market.
D is a positive slope.
E shows how much individuals are willing to supply at each and every price.
18. In the market for air travel, which of the following variables would decrease demand,
ceteris paribus?
A An increase in rental rates for hired cars, a substitute
B A rise in income of tourists
C Arise in the price of air travel
D A rise in the price of hotel accommodation, a complement
E A drop in the price of air travel

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