As Cities Prospered and Per-Capita Incomes Increased, the Demand for Bus

question 112

Multiple Choice

As cities prospered and per-capita incomes increased, the demand for bus travel diminished. This suggests that:

• A) cities could raise revenue by increasing bus fares.
• B) the demand for bus travel is price elastic.
• C) bus travel and automobile travel are complements.
• D) bus travel is an inferior good.

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Definitions:

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