Multiple Choice
Suppose that if the price of plane tickets increased, more people would choose to travel by train. If this happened, you would know that:
A) plane tickets are an inferior good.
B) the cross-price elasticity between plane tickets and train tickets is positive.
C) the cross-price elasticity between plane tickets and train tickets is negative.
D) plane tickets and train tickets are complements.
Correct Answer:
Verified
Correct Answer:
Verified
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