In a metropolitan area, suburban commuter rail travel is classified as an inferior good relative to private car ownership. If the local government successfully implements a policy that permanently increases median real household incomes, while simultaneously the price of city-centre car parking (a complement to private car travel) decreases, what is the most likely effect on the demand curve for suburban commuter rail travel?
A shift to the left of the demand curve
A shift to the right of the demand curve
A movement down and to the right along the demand curve
A movement up and to the left along the demand curve
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.