What would an economist predict would happen if airfares to Europe were to increase?
A) Airlines would make significantly greater profits.
B) Most people would not change their travel and vacation plans.
C) More individuals would choose to fly to Europe because now it is a more valuable experience.
D) Many individuals would substitute toward other travel destinations.

Question

Quizplus · Accepted Answer

If airfares to Europe were to increase, many individuals would substitute toward other travel destinations. This is because as the price of airfare rises, people will be less likely to want to spend the extra money to travel to Europe and instead opt to travel to other, less expensive destinations.

What Would an Economist Predict Would Happen If Airfares to Europe