Authors libby rittenberg 174
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3. Which of the following pairs of goods are likely to be classified as
substitutes? Complements? Defend your answer.
1. Peanut butter and jelly
2. Eggs and ham
3. Nike brand and Reebok brand sneakers
4. IBM and Apple Macintosh brand computers
5. Dress shirts and ties
6. Airline tickets and hotels
7. Gasoline and tires
8. Beer and wine
9. Faxes and first-class mail
10. Cereal and milk
11. Cereal and eggs
4. A study found that lower airfares led some people to substitute
flying for driving to their vacation destinations. This reduced the
demand for car travel and led to reduced traffic fatalities, since air
travel is safer per passenger mile than car travel. Using the logic
suggested by that study, suggest how each of the following events
would affect the number of highway fatalities in any one year.
1. An increase in the price of gasoline
2. A large reduction in rental rates for passenger vans
3. An increase in airfares
5. Children under age 2 are now allowed to fly free on U.S. airlines; they
usually sit in their parents’ laps. Some safety advocates have urged
that they be required to be strapped in infant seats, which would
mean their parents would have to purchase tickets for them. Some
Attributed to Libby Rittenberg and Timothy Tregarthen
Saylor URL: />
Saylor.org
174
