Assuming That Bus Travel Is an Inferior Good, a Decrease

question 67

Multiple Choice

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause

• A) a downward movement along the demand curve for bus travel.
• B) no change in the demand curve for bus travel.
• C) an upward movement along the demand curve for air travel.
• D) a rightward shift in the demand curve for bus travel.

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Definitions:

Future Value

The worth of an investment or cash flow at a specified future date, based on an assumed rate of growth over time.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Resource

In finance, a resource refers to any financial asset or input that can contribute to a firm's ability to create goods, services, or further financial gains.

Annuity

A financial instrument that provides a consistent series of payments to a person, often employed as a component of a retirement plan.