As the income of bus riders increased,the wages of bus drivers increased simultaneously.How does this affect the market for bus rides (inferior good)?
A)The demand curve will shift to the left;the supply curve will shift to the left
B)The demand curve will shift to the left;the supply curve will shift to the right
C)The demand curve will shift to the right;the supply curve will shift to the left
D)The demand curve will shift to the right;the supply curve will shift to the right

Question

​As the income of bus riders increased,the wages of bus drivers increased simultaneously.How does this affect the market for bus rides (inferior good)?
A)​The demand curve will shift to the left;the supply curve will shift to the left
B)The demand curve will shift to the left;the supply curve will shift to the right
C)The demand curve will shift to the right;the supply curve will shift to the left
D)​The demand curve will shift to the right;the supply curve will shift to the right

Quizplus · Accepted Answer

As the income of bus riders increases, they will have a higher willingness and ability to pay for more comfortable modes of transportation, such as cars or taxis, which will result in a decrease in the demand for bus rides. At the same time, the increase in wages of bus drivers will increase the cost of providing bus rides, resulting in a decrease in the supply of bus rides. Therefore, both the demand and supply curves will shift to the left, causing a decrease in the quantity of bus rides demanded and supplied. This demonstrates that bus rides are an inferior good.

​As the Income of Bus Riders Increased,the Wages of Bus

As the Income of Bus Riders Increased,the Wages of Bus