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 statement provides one possible explanation for this phenomenon?

Question

Quizplus · Accepted Answer

When incomes decrease, people tend to shift from purchasing normal goods to inferior goods. In this case, air travel is a normal good, meaning that as incomes increase, people are more likely to spend more on air travel. On the other hand, travel by car is an inferior good, meaning that as incomes decrease, people are more likely to shift from air travel to travel by car which is a cheaper alternative.

When the Economy Suffers a Downturn and the Incomes of Many