Consider the Following Data for a Hypothetical Economy -Refer to Table 4- 5

question 98

Multiple Choice

Consider the following data for a hypothetical economy. $$\begin{array}{l}\begin{array} { | l | l | l | l | l | l | } \hline \text { Year } & \begin{array} { l } \text { Average } \\\text { Household } \\\text { Income } ( \$ ) \end{array} & \begin{array} { l } \text { Price of } \\\text { Transit Passes }\end{array} & \begin{array} { l } \text { Qty } \\\text { Demanded of } \\\text { Transit Passes }\end{array} & \begin{array} { l } \text { Price of } \\\text { Gasoline } \\\text { (\$/litre) }\end{array} & \begin{array} { l } \text { Qty Demanded } \\\text { of Gasoline } \\\text { (millions of litres) }\end{array} \\\hline 2009 & 80000 & 60 & 99000 & 0.95 & 1940 \\\hline 2010 & 80000 & 60 & 101000 & 1.05 & 2060 \\\hline\end{array}\\\text { TABLE } 4-5\end{array}$$
-Refer to Table 4- 5. The cross- price elasticity of demand for transit passes in terms of the price of gasoline is . A rise in the price of gasoline causes the demand curve for transit passes to shift to the _.

• A) 0.2; right
• B) 0.2; left
• C) 5.0; right
• D) 0.33; left
• E) 0.33; right

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Definitions:

Lawrence Peter

A Canadian educator and "hierarchiologist," best known for formulating the Peter Principle, which suggests that people in a hierarchy tend to rise to their "level of incompetence."

Successful Transition

The process of smoothly moving from one state or condition to another in a way that achieves intended outcomes.

Delegate Tasks

The act of assigning responsibility and authority to someone else to complete specific activities while retaining the ultimate accountability for their outcome.

Subordinate

An individual who is lower in rank or position, typically subject to the authority or control of another within an organizational hierarchy.