Suppose the Price of Public Transportation Increases

question 45

Multiple Choice

Suppose the price of public transportation increases. You know that the income effect of this increase is 5, the substitution effect is 10, but you do not know the signs. The total effect of the increase in the price of public transport could be either

• A)15 or 5.
• B)5 or -5.
• C)-15 or 15.
• D)5 or -15.

---

Definitions:

Bacteria

Microscopic, single-celled organisms found in diverse environments; they can be beneficial, neutral, or harmful to humans and other life forms.

Pneumonia

An inflammatory condition of the lung primarily affecting the small air sacs known as alveoli, typically caused by infection with viruses, bacteria, or other microorganisms.

Biophysical Profile

A prenatal ultrasound evaluation of a fetus's health, assessing factors like heart rate, muscle tone, movement, breathing, and amniotic fluid level.

Amniotic Fluid

The protective liquid contained within the amniotic sac surrounding and cushioning a fetus during pregnancy.