Question

In the market for air travel, which of the following variables would decrease demand, ceteris paribus?
a) An increase in rental rates for hired cars, a substitute.
b) A rise in income of tourists.
c) A rise in the price of air travel.
d) A rise in the price of hotel accommodation, a complement.

Answer 1

In the market for air travel, a rise in the price of hotel accommodation, which is a complement, would decrease demand, for air travel.
So, the correct answer is
d) A rise in the price of hotel accommodation, a complement.