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

Question

​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

Quizplus · Accepted Answer

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.

​How Does an Increase in Income Affect the Market for Bus

How Does an Increase in Income Affect the Market for Bus