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

Price elasticity of demand — practice question

A bus trip is classed as an inferior good in a comparatively affluent country such as Singapore, but as a normal good in a comparatively low-income country such as Tanzania. In what direction would a rise in incomes in both countries make the demand curve for bus trips in Singapore and Tanzania move?

  • ASingapore: left; Tanzania: left
  • BSingapore: left; Tanzania: right
  • CSingapore: right; Tanzania: left
  • DSingapore: right; Tanzania: right

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