If Consumers' Incomes Increase and the Demand for Bus Rides

question 52

Multiple Choice

If consumers' incomes increase and the demand for bus rides decreases

• A) bus rides are a normal good.
• B) bus rides are an inferior good.
• C) consumers are behaving irrationally.
• D) none of the above

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Definitions:

Independently Owned

Businesses or properties that are owned by individuals or private entities rather than corporations or chains.

Franchise

A business arrangement where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or business model to offer, sell, or distribute goods or services.

Necessity-based Entrepreneurship

Entrepreneurial activities initiated as a result of limited job opportunities or economic necessity, rather than from the identification of a new business opportunity.

Chemical-free

Products or processes that do not contain synthetic chemicals or additives.