In general, when incomes rise, individuals are more likely to travel by air than by car when they take vacations. Which statement provides one possible explanation for this phenomenon?
A)Air travel and travel by car are complementary goods.
B)Air travel and travel by car are both normal goods.
C)Air travel is a normal good, and travel by car is an inferior good.
D)Air travel is an inferior good, and travel by car is a normal good.

Question

Quizplus · Accepted Answer

When incomes rise, individuals tend to view travel by car as an inferior good, meaning that as their income increases, they are less likely to use travel by car as a means of transportation. On the other hand, air travel is viewed as a normal good, meaning that as their income increases, individuals are more likely to use air travel for their vacations. This can be due to the perception that air travel is faster, more comfortable, and more convenient than travel by car.

In General, When Incomes Rise, Individuals Are More Likely to Travel