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There is an increase in both consumer income and in the price of jet fuel, an im

ID: 1101394 • Letter: T

Question

There is an increase in both consumer income and 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 purchased of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____.

(A) indeterminate; decrease

(B) increase; indeterminate

decrease; indeterminate

indeterminate; increase

(A) indeterminate; decrease

(B) increase; indeterminate

(C)

decrease; indeterminate

(D)

indeterminate; increase

Explanation / Answer

There is an increase in both consumer income and 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 purchased of air travel? The price of air travel will (be) increase____ and quantity purchased will (be) indeterminate____.

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