The Local Public Transportation System Recently Raised Rates and Was

question 65

Multiple Choice

The local public transportation system recently raised rates and was surprised to be faced with declining revenue. What can be accurately concluded?

• A)The cross-price elasticity of demand for public transportation is less than 1.
• B)The demand for public transportation is inelastic.
• C)The income elasticity of demand for public transportation is greater than 1.
• D)The demand for public transportation is elastic.
• E)The demand curve for public transportation has a positive slope.

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Definitions:

Liberalization

The process of eliminating restrictions and barriers to free trade or other economic activities, often to encourage economic development.

Delegation of Authority

The process of distributing and entrusting work or decision-making power from a higher authority to lower levels within an organization or system.