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.

Question

Quizplus · Accepted Answer

The correct answer is D) rightward; substitute. When the price of a good (in this case, a Delta ticket) increases, consumers will look for alternatives, increasing the demand for substitutes (in this case, Continental tickets). This is represented by a rightward shift in the demand curve for the substitute product.

In Mid-2012 Delta Increased the Price of a New York