Mass Transit Train and Bus Service Has Peak Periods of Demand

question 11

Multiple Choice

Mass transit train and bus service has peak periods of demand Monday through Friday during morning and evening rush hours. Demand for mass transit service is a(n) :

• A) Random demand fluctuation
• B) Relative demand shift
• C) Predictable demand cycle
• D) Vertical demand configuration
• E) Organized demand pattern

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of a normal good.

Normal Good

A good for which demand increases as the income of the consumer increases.

Price Elasticity

An indicator of the alteration in the amount of a product that is either demanded or supplied, as a result of variations in its market price.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.