In Mid-2012 Delta Increased the Price of a New York

question 337

Multiple Choice

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.

• A) rightward; complement
• B) leftward; substitute
• C) leftward; complement
• D) rightward; substitute

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Definitions:

Cost Structure

The composition of a company's costs, including fixed and variable costs, and how they affect overall expenditure.

Minimum Quantities

The smallest amount of a product that can be ordered, produced, or maintained in inventory.

Maximized Total Cost

Refers to the highest possible sum of all costs associated with a certain process, project, or production activity.

Raw Materials

The basic, unprocessed resources or inputs used in the production of goods and services.