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.
Correct Answer:
Verified
Correct Answer:
Verified
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