For People Who Live near a Bus Route, a Subway

question 56

Multiple Choice

For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to driving their own cars.So, for these people, the cross-price elasticity of demand between petrol and public transportation is:

• A)positive.
• B)negative.
• C)zero.
• D)infinity.

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Definitions:

Delivery Costs

Expenses incurred by a company to transport its goods or services to the customer.

Product Cost

The total cost associated with producing a good, including raw materials, labor, and overhead.

Period Cost

Costs that are not directly tied to the production process and are expensed in the accounting period in which they are incurred.

Insurance Expired

The portion of an insurance premium that has been used up during the policy term, representing a cost for the period.