AS Paper 1, June 2018Introduction to Markets and Market Failure
AS Paper 1, June 2018, Q4(b)
Using the data provided, explain whether bus travel is a normal good or an inferior good.
Short answerExplain3 marks
Context
Between 2013 and 2015, median household income in the UK increased from £24200 to £25700. Over the same period the demand for bus travel fell by 3%.