5. Assume the market for local bus rides. People's income are increasing as the economy is booming. Moreover, government is giving subsidies to owners of local buses. What shifts demand and supply of local bus rides? Assuming the magnitude of the shifts is equal, what happens to price and quantity demanded and supplied of local bus rides?

5. Assume the market for local bus rides. People's income are increasing as the economy is booming. Moreover, government is giving subsidies to owners of local buses. What shifts demand and supply of local bus rides? Assuming the magnitude of the shifts is equal, what happens to price and quantity demanded and supplied of local bus rides?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Assume the market for local bus rides. People's income are increasing as the economy is
booming. Moreover, government is giving subsidies to owners of local buses. What shifts
demand and supply of local bus rides? Assuming the magnitude of the shifts is equal, what
happens to price and quantity demanded and supplied of local bus rides?

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