Exhibit 1A-7 Straight line relationship

Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?
A) A rise in people's annual income.
B) A rise in people's expenditure on air travel.
C) A rise in the price of air travel.
D) Nothing will shift the line in the graph.

Question

Exhibit 1A-7 Straight line relationship

Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?
A) A rise in people's annual income. 
B) A rise in people's expenditure on air travel. 
C) A rise in the price of air travel. 
D) Nothing will shift the line in the graph.

Quizplus · Accepted Answer

A rise in people's income or expenditure on air travel would not cause a shift in the relationship shown, as it is a graph of a straight-line relationship between price and quantity, assuming constant income and expenditure. However, a rise in the price of air travel would cause a shift in the relationship, as it would result in a different quantity demanded at each price point. Therefore, choice C is the best answer. Choice D is incorrect, as any change in one of the variables being graphed will result in a shift in the line.

Exhibit 1A-7 Straight Line Relationship