Prices of commercial airline tickets (assume that this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen.
Which of the following best explains the falling prices of airline tickets?
A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right.
B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left.
C) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left.
D) The demand curve and the supply curve for airline tickets have both shifted to the right.
Question 2
Because Federal Reserve Notes (paper currency) are legal tender,
A) U.S. creditors must accept them in payment of debts.
B) U.S. workers must accept them as payment for labor services.
C) U.S. firms must accept them as payment for goods and services.
D) All of he above are correct.
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