If the Price of Gasoline Decreases, What Will Be the Impact

question 240

Multiple Choice

If the price of gasoline decreases, what will be the impact in the market for public transportation?

• A)The demand curve for public transportation shifts to the right.
• B)The quantity of public transportation demanded increases.
• C)The demand curve for public transportation shifts to the left.
• D)The quantity of public transportation demanded decreases.

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Definitions:

Consumption

Households' utilization of both products and services.

MPS

The marginal propensity to save, which is the fraction of additional income that is saved.

Disposable Income

The fiscal envelope for household spending and saving activity subsequent to income tax adjustments.

Consumption

The purchase and use of goods and services by households, considered a primary component of economic activity and an indicator of the economic health of a nation.