For People Who Live near a Bus Route, a Subway

question 198

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 gasoline and public transportation is

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

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Definitions:

Reverse Causality

A situation where the cause and effect in a relationship are the opposite of what is commonly perceived or proposed.

Time-Series

A sequence of numerical data points in successive order, usually occurring at uniform intervals, used to analyze trends over time.

Linear

A mathematical relationship or equation in which the change in a variable is proportional to the change in another variable.

Nonlinear

Relating to or denoting a system of relationships that do not correspond proportionally to the level of inputs.