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When the Economy Suffers a Downturn and the Incomes of Many

Question 8

Essay

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than to fly.Which of the following provides one possible explanation for this phenomenon?
A.Air travel and vacation travel by car are complementary goods.
B.Air travel and vacation travel by car are both normal goods.
C.Air travel is a normal good and vacation travel by car is an inferior good.
D.Air travel is an inferior good and vacation travel by car is a normal good.

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Air travel is a norm...

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