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:

Soviet Union

A former federal socialist state in eastern Europe and northern Asia, existing from 1922 to 1991, known for its communist government.

Gas Pump

A mechanical device at a fuel station used to dispense gasoline or diesel into the fuel tanks of vehicles.

Local Ordinance

Laws, rules, or regulations that are passed and enforced by a local government authority, applicable only within its jurisdiction.

Price of Gasoline

The amount of money charged for a unit of gasoline, influenced by factors such as crude oil prices, taxes, and demand.