As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b

Question

Aleks [24]

3 years ago

5

As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b

us rides (inferior good)?

Business

1 answer:

kondor19780726 [428] · Answer 1 · 2022-01-08T16:18:27+03:00

Answer:

The demand curve and supply curve will shift leftwards.

Explanation:

The increase in the income of riders will decrease the number of bus rides because there is an inverse relationship between income and inferior goods. Therefore, the demand curve for bus rides will shift leftwards. Moreover, the increase in wages is an input cost, therefore, the rise in input cost will shift the supply curve leftwards.

​As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b

As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b