There Is an Increase in Both Consumer Income and in the Price

question 164

Multiple Choice

There is an increase in both consumer income and in the price of jet fuel,an important resource used to produce air travel.If air travel is a normal good,how will these changes influence the price and quantity purchased of air travel? The price of air travel will (be) ____ and quantity purchased will (be) ____.

• A) indeterminate; decrease
• B) increase; indeterminate
• C) decrease; indeterminate
• D) indeterminate; increase

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Definitions:

Kansas-Nebraska Act

A piece of legislation passed by the U.S. Congress in 1854 that allowed inhabitants of Kansas and Nebraska territories to decide whether to allow slavery, leading to significant political and social conflict.

Popular Sovereignty

A principle that the authority of a state and its government are created and sustained by the consent of its people, through their elected representatives.

Missouri Compromise

An agreement passed in 1820 between the pro-slavery and anti-slavery factions in the United States Congress, involving primarily the regulation of slavery in the western territories.

Republican Party

One of the two major political parties in the United States, traditionally emphasizing limited government, free market principles, and conservative social policies.