A Study of Mass-Transit Systems in American Cities Revealed That

question 160

Multiple Choice

A study of mass-transit systems in American cities revealed that in the long run, revenues generally decline after substantial fare increases. This would suggest that

• A) the demand for mass transit is price-elastic in the long run.
• B) the demand for mass transit is price-inelastic in the long run.
• C) mass-transit service deteriorates in the long run as price rises.
• D) there are few good substitutes for such systems in urban areas.

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Definitions:

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The duties and obligations that managers have to oversee and guide their organization effectively.

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