Assuming That Bus Travel Is an Inferior Good, an Increase

question 8

Multiple Choice

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

• A) an upward movement along the demand curve for bus travel.
• B) a downward movement along the demand curve for bus travel.
• C) a rightward shift in the demand curve for bus travel.
• D) a leftward shift in the demand curve for bus travel.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's strategic goal.

Capital Improvements

Long-term investment expenditures made to improve, upgrade, or extend the life of a capital asset, often resulting in increased operational efficiency or capacity.

New Ventures

Initiatives or startups that are in their early stages of translating new business ideas into operational businesses.

Capital Budgets

Financial plans that allocate expenditures for acquiring and upgrading physical assets such as buildings and machinery.