A regional transport authority has collected data on the average number of weekly bus journeys made by residents in a metropolitan area alongside their average weekly household disposable income, as shown in the table below.
| Year | Average weekly bus journeys | Average weekly household disposable income |
|---|---|---|
| 2022 | 1,200 | £600 |
| 2023 | 1,104 | £690 |
These statistics suggest that local bus travel
is a normal good because demand falls as incomes rise.
has an income elasticity of demand of −1.88-1.88−1.88.
is an inferior good.
has an income elasticity of demand greater than 000.
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.