In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen
A) rightward; complement
B) leftward; substitute
C) leftward; complement
D) rightward; substitute
D
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In a closed economy with no government, aggregate expenditure is
A) consumption plus investment. B) saving plus investment. C) consumption plus the MPC. D) MPC + MPS. E) none of the above.
The ECB's Governing Council has price stability as a primary objective. It has defined price stability as:
A. an inflation rate in the three to five percent range. B. an inflation rate below, but close to, 2 percent over the medium term. C. a zero rate of inflation. D. an inflation rate less than 5 percent.
"Impulse buying" is often the result of a:
A. Rational optimizing decision in response to incentives and prices B. Precise estimation of one's marginal utilities and price comparisons C. Systematic non-rational behavior that marketers can take advantage of D. Random error in a consumer's behavior that is not predictable
If the price elasticity of demand coefficient equals 2, this means a 10 percent increase in price will result in a 20 percent decrease in the quantity demanded
a. True b. False Indicate whether the statement is true or false