Answer: Air travel is a normal good and vacation travel by car is an inferior good
Explanation: What is a normal good and what is an inferior good.
Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.
This therefore means that the demand of inferior goods is inversely related to the income of the consumer.
From the question above, we can say that car trips are inferior goods while the air travel are normal goods.
I believe the answer is D. Hiring employees.
Hope that helped.
Answer:
Pure competition
Explanation:
Pure competition is a market structure characterized by many competitors selling similar products. Due to the high competition, market forces dertermine prices. Pure competition is also referred to as perfect competition. The other features of pure competition include.
- There many buyers and many sellers who have access to market information
- There are barriers no entry and exit in the market
- Firms sell homogeneous products
- Firms cannot influence the market price. Firms are price takers.
- The units of production such are homogeneous and are freely moving.
