Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause
a. a downward movement along the demand curve for bus travel.
b. no change in the demand curve for bus travel.
c. an upward movement along the demand curve for air travel.
d. a rightward shift in the demand curve for bus travel.
D
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Collective consumption goods can lose their collective consumption characteristics as they get more crowded
a. True b. False
In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?
a. The good is produced privately and taxes are used to provide it to consumers free of charge. b. The good is produced privately and consumers purchase it with their own money. c. The good is produced by government enterprises and the cost of its production is covered by taxes. d. The good is produced by government enterprises and consumers purchase it with their own money.