When Income Increases from $20,000 to $30,000 the Quantity of Inter-City

question 51

Multiple Choice

When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8.Hence

• A) inter-city bus trips are a normal good.
• B) the income elasticity of demand for inter-city bus trips is -1.8.
• C) the income elasticity of demand for inter-city bus trips is -0.56.
• D) Both answers A and B are correct.
• E) Both answers A and C are correct.

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Definitions:

Supply Chains

The entire network of entities, directly or indirectly, involved in the sourcing, production, and distribution of goods or services from suppliers to consumers.

Supply Chain Function

The activities and operations undertaken by entities within a supply chain, from procurement of raw materials to delivery of finished goods.

Shipping Company

A business that provides services for transporting goods by sea, air, or land, from one location to another.

Flow Management

The process of overseeing and regulating the movement of goods, services, and information through the supply chain.