Exhibit 1A-7 Straight line relationship
-Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?
A) A rise in people's annual income.
B) A rise in people's expenditure on air travel.
C) A rise in the price of air travel.
D) All of these would shift the line in the graph.

Question

Exhibit 1A-7 Straight line relationship 
-Which of the following would cause a shift in the relationship shown in Exhibit 1A-7?
A) A rise in people's annual income. 
B) A rise in people's expenditure on air travel. 
C) A rise in the price of air travel. 
D) All of these would shift the line in the graph.

Quizplus · Accepted Answer

A rise in people's income or expenditure on air travel would not cause a shift in the relationship shown in Exhibit 1A-7, as it is a straight line with a fixed slope. However, a rise in the price of air travel would cause a shift in the line, as it would result in a higher cost of air travel relative to other goods and services, leading to a lower quantity demanded at any given price level.

Exhibit 1A-7 Straight Line Relationship