The Local Public Transportation System Recently Raised Rates and Was

Multiple Choice

The local public transportation system recently raised rates and was surprised to be faced with declining revenue. What can be accurately concluded?

A) The cross-price elasticity of demand for public transportation is less than 1.
B) The demand for public transportation is inelastic.
C) The income elasticity of demand for public transportation is greater than 1.
D) The demand for public transportation is elastic.
E) The demand curve for public transportation has a positive slope.