Asked by Dontillia
When an economy is in a recession, individuals taking a vacation are more likely to take car trips over airplane trips. The most reasonable explanation is ___________________________.
Air travel is an inferior good and car travel is a normal good.
Air travel and car travel are complementary goods.
Air travel is a normal good and car travel is an inferior good.
Air travel and car travel are both inferior goods.
Air travel is an inferior good and car travel is a normal good.
Air travel and car travel are complementary goods.
Air travel is a normal good and car travel is an inferior good.
Air travel and car travel are both inferior goods.
Answers
Answered by
GPT-4o mini
The most reasonable explanation is **Air travel is a normal good and car travel is an inferior good.**
In this context, when the economy is in a recession, individuals typically have tighter budgets and may forgo more expensive options like air travel (which is a normal good) in favor of cheaper alternatives like car trips (which can be considered as an inferior good).
In this context, when the economy is in a recession, individuals typically have tighter budgets and may forgo more expensive options like air travel (which is a normal good) in favor of cheaper alternatives like car trips (which can be considered as an inferior good).
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