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Long-Distance Travel by Bus Is an Inferior Good

Question 294

Multiple Choice

Long-distance travel by bus is an inferior good. As peopleʹs incomes increase and other things remain the same, you predict that the


A) demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.
B) price of long-distance travel by bus will fall and the demand for long -distance travel by bus will increase.
C) price of long-distance travel by bus will fall.
D) demand for long-distance travel by bus will decrease and the price will rise.

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