A market research firm observes that when consumer incomes rise, the demand curve for public bus travel shifts to the left. Conversely, when the price of private taxi services increases, the demand curve for public bus travel shifts to the right.
Which of the following correctly classifies public bus travel and its relationship to private taxi services?
Public bus travel is an inferior good, and private taxi services are substitutes.
Public bus travel is a normal good, and private taxi services are complements.
Public bus travel is an inferior good, and private taxi services are complements.
Public bus travel is a normal good, and private taxi services are substitutes.
