Assuming that bus travel is an inferior good, an increase in consumer income, other things being equal, will cause a(n):

Question

Quizplus · Accepted Answer

An increase in consumer income, assuming bus travel is an inferior good, would lead to a decrease in the demand for bus travel. This is represented by a leftward shift in the demand curve, as consumers would likely switch to more preferred modes of transportation.

Assuming That Bus Travel Is an Inferior Good, an Increase