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) zero. B) positive. C) negative. D) infinity.
Question 2
To affect the market outcome, a price ceiling
A) must be set below the equilibrium price. B) must be set below the legal price.
C) must be set below the price floor. D) must be set below the black market price.
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