Ceteris paribus, the fear among travelers created by the 9-11 attacks would have what impact on the market for air travel?
A)an increase in equilibrium price and an increase in equilibrium quantity.
B)an increase in equilibrium price and a decrease in equilibrium quantity.
C)a decrease in equilibrium price and an increase in equilibrium quantity.
D)a decrease in equilibrium price and a decrease in equilibrium quantity.

Question

Ceteris paribus, the fear among travelers created by the 9-11 attacks would have what impact on the market for air travel?
A)​an increase in equilibrium price and an increase in equilibrium quantity.
B)​an increase in equilibrium price and a decrease in equilibrium quantity.
C)​a decrease in equilibrium price and an increase in equilibrium quantity.
D)​a decrease in equilibrium price and a decrease in equilibrium quantity.

Quizplus · Accepted Answer

The fear among travelers due to the 9-11 attacks would decrease the demand for air travel, leading to a decrease in both the equilibrium price and quantity as fewer people are willing to fly, reducing the overall demand in the market.

Ceteris Paribus, the Fear Among Travelers Created by the 9-11