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

Respuesta :

Answer:

B) positive

Explanation:

  • The people that live near the bus and subway station or the commuter rail line are those that use the public transportation services.
  • Thus it provides a substituent for the cars to the people and thus shows a cross-price elasticity of demand between the gasoline and public transport system that is positive.

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