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.
D
You might also like to view...
Who appoints the chair of the Federal Reserve System?
A) the Federal Open Market Committee (FOMC) B) member banks of the Federal Reserve System C) the President of the United States D) the Senate and Congress
The demand for durable goods tends to be more price elastic than the demand for non-durables
a. true b. false
In an economy where nominal incomes adjust equally to changes in the price level, we would expect the long-run aggregate supply curve to be: a. vertical
b. horizontal. c. unit elastic. d. negatively sloped. e. positively sloped.
Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing is increasing the price level." The statement rests on the assumption that:
a. the aggregate demand curve is a horizontal line. b. the aggregate supply curve is a vertical line. c. the aggregate supply curve is upward-sloping. d. the aggregate supply curve is downward-sloping. e. the aggregate supply curve is a horizontal line.