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.
