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If Canadians Suddenly Develop a Strong Urge to Escape the Cold

Question 61

Multiple Choice

If Canadians suddenly develop a strong urge to escape the cold winter by taking vacations in Hawaii, the


A) price of a vacation in Hawaii rises and the quantity demanded of Hawaiian vacations decreases.
B) price of a skiing vacation in the mountains rises.
C) initial result of the change is a surplus of vacations in Hawaii, leading to a price rise.
D) price of airline tickets falls as ticket agents make deals in response to this change.
E) price of luggage will rise, because luggage and vacations are complements.

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