Which of the Following Would Be Most Likely to Increase

question 187

Multiple Choice

Which of the following would be most likely to increase the demand for downtown parking in a large city?

• A)improved bus service to the downtown area
• B)lower downtown parking fees
• C)more downtown parking lots
• D)more freeways leading to the downtown area
• E)a major employer moves to the suburbs

---

Definitions:

Capital Intensive

A business process or industry that requires large amounts of money and financial resources to produce a good or service.

Break-even Point

The juncture where the sum of all expenses matches the sum of all income, leading to neither a profit nor a deficit.

Variable Expense

Expenses that vary directly with the amount of production or the degree of operational activity.

Contribution Margin Ratio

The percentage of each sale that exceeds the variable costs of production.