Evidence suggests that the cross elasticity of demand between private and public transport, although positive, is low. Therefore it follows that: A fall in the demand for private transport would cause a small rise in the price of public transport A fall in the demand for private transport would cause a small rise in the demand for public transport The effects cannot be determined from the information given A rise in the price of private transport would cause a small rise in the demand for public transport A fall in the price of private transport would cause slight rise in the demand for public transport Some other answer

Evidence suggests that the cross elasticity of demand between private and public transport, although positive, is low. Therefore it follows that: A fall in the demand for private transport would cause a small rise in the price of public transport A fall in the demand for private transport would cause a small rise in the demand for public transport The effects cannot be determined from the information given A rise in the price of private transport would cause a small rise in the demand for public transport A fall in the price of private transport would cause slight rise in the demand for public transport Some other answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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