1 Which of the following would be considered the MOST INELASTIC product/service? a) A flight from Toronto to Ottawa, which has flights every hour b) Renting an economy car from one of the rental companies at the airport c) A budget hotel in a major city d) An Alaskan cruise on one of 2 well known cruise line companies 2 Which of the following would likely result in a SHIFT TO THE LEFT of the supply curve for an airline? a) Receipt of a government subsidy b) An employee strike () A decrease in fuel costs d) Production of bigger aircraft 3 Which of the following describes an elastic product or service? a) A 10% rise in price results in a 15% decrease in demand b) A 10% rise in price results in a 10% decrease in demand () A 10% rise in price results in no decrease in demand d) A 10% rise in price results in a 5% decrease in demand 4 Which of the following statements is NOT true? a) Where the price of air tickets is above equilibrium, supply will exceed demand b) Air travel is an inferior good c) A rise in the price of air travel causes a rise in demand for train travel over similar routes d) A rise in the price of air travel causes demand to fall