An increase in subway fares in New York City will boost your expenditures on subway rides if
A) the supply of subway rides is elastic.
B) the supply of subway rides is inelastic.
C) your demand for subway rides is elastic.
D) your demand for subway rides is inelastic.

Question

Quizplus · Accepted Answer

If your demand for subway rides is inelastic, you will continue to purchase nearly the same quantity of rides despite the fare increase, leading to higher total expenditures.

An Increase in Subway Fares in New York City Will