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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 10PA

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