During Diwali festive season, when airlines in India raise prices, if the Indian
Railways were to reduce their ticket prices and run additional passenger trains, what would
have happened, assuring that rail travel is a substitute to air travel?
(a) The demand curve for airline tickets should shift leftward
(b) The supply curve for airline tickets should shift leftward
(c) The demand curve for airline tickets should shift rightward
(d) The supply curve for airline tickets should shift rightward
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Answer:
i dont understand your question
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The Demand- Curve for airline tickets should shift leftward
Explanation :
- When the price or the cost of the Substitute product decreases, the demand of the substitute product increases. And its Demand - Curve shift rightwards.
- Whereas due to this, the demand of the product it is substituted with , ultimately decreases and its demand- curve shifts leftwards.
- Also if Price or cost of the said Product increases its demand decreases and its Demand- curve tends to shift to left and the Demand- curve of the substitute product to its right side.
- Hence option a is the correct answer.
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