Economics 9708 · AS & A Level · Income elasticity of demand

Income elasticity of demand — practice question

At present, buses operate at two-hour intervals between X and Y. The company running the route plans to change this to one bus every hour. What is the most likely effect on the number of passengers carried each day and the number carried on each trip?

  • Aincrease / decrease
  • Bincrease / uncertain
  • Cunchanged / decrease
  • Dunchanged / uncertain

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