Airlines Used to Allow Infant Children to Ride on a Parent's

question 111

Multiple Choice

Airlines used to allow infant children to ride on a parent's lap for free.Suppose that they start requiring that parents purchase an extra ticket for their infants and use a safety seat.It is likely this policy would result in

• A)no change in the number of families selecting air travel.
• B)a significant reduction in the number of air traffic accidents.
• C)an increase in the number of infant deaths during auto travel.
• D)a reduction in the number of infant deaths as parents leave their infants at home when they travel.

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Definitions:

Elastic Supply

Refers to a situation where the quantity of a good supplied by producers changes significantly in response to a small change in its price.

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to price changes.

Inelastic Supply

A scenario in which the amount of a product or service provided is not significantly affected by variations in its price.

Luxury Tax

A tax imposed on expensive goods which are considered non-essential, aimed at discouraging their purchase or generating government revenue from luxury items.