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:

Probability

A gauge for predicting the chance that an event will happen, expressed in numbers that fall within 0 and 1.

Power Consumption

The amount of energy consumed by a device or system in a given period.

Standard Deviation

An indicator employed to assess the degree of scatter or diversity among values in a data set.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.