Is public transportation an inferior good

Is public transportation an inferior good - public...

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Is public transportation an inferior good? According to Edgar Browning and Mark Zupan, the consumption of inferior goods is inversely related to income. Inferior goods can be seen as anything a consumer would demand less of if they had a higher level of real income (Macroeconomics, 2010). In my opinion, public transportation can be considered an inferior good because the demand for this good decreases when a consumer’s real income increases; there is a negative relationship between the demand of
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Unformatted text preview: public transportation and an individuals higher income. A consumer might choose to forgo using his own transportation when they have less income in order to reduce private transportations related expenses such as car insurance, gas, service repairs, etc. On the other hand, if the consumers real income increases, he would be able to afford private transportation and the consumption of public transportation would decline....
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