Asked by Kewis Payton on Sep 24, 2024
Verified
How does an increase in income affect the market for bus rides (inferior good) ?
A) The demand curve for bus rides to shift to the right
B) The demand curve for bus rides to shift to the left
C) The supply curve for bus rides to shift to the right
D) The supply curve for bus rides to shift to the left
Inferior Good
A type of good for which demand decreases as the income of consumers increases, and vice versa.
Income Increase
A rise in the amount of money received, especially on a regular basis, through work, investments, or other sources.
Demand Curve
A graphical representation showing the relationship between the price of a good and the quantity demanded.
- Contrast normal goods with inferior ones, focusing on how alterations in income affect their demand.
Verified Answer
KC
Keely Crimando4 days ago
Final Answer :
B
Explanation :
An increase in income would lead to consumers having more money to spend, and they would likely switch to a superior mode of transportation, leading to a decrease in demand for bus rides. This would cause the demand curve for bus rides to shift to the left.
Learning Objectives
- Contrast normal goods with inferior ones, focusing on how alterations in income affect their demand.