If airfares to Europe were to increase,an economist would predict that:

Question

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When airfares to Europe increase, some individuals will substitute toward other travel destinations. This is because the increased price makes alternative vacation spots relatively more attractive. Option A is unlikely because the increase in airfare costs will be prohibitive for some. Option B does not make sense because an increase in airfare costs does not make the European vacation experience more valuable; instead, it makes it more expensive. Option D is also unlikely because the airlines will have fewer customers who would be willing to pay the increased price, leading to a reduction in profits.

If Airfares to Europe Were to Increase,an Economist Would Predict