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) Nothing will 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) Nothing will shift the line in the graph.

Quizplus · Accepted Answer

A rise in the price of air travel would cause a shift in the relationship, as it would decrease the quantity of air travel demanded for a given level of income. Option A and B would cause a movement along the existing line, but not a shift in the relationship. Option D is incorrect as external factors such as changes in price or consumer preferences can cause a shift in the relationship.

Exhibit 1A-7 Straight Line Relationship