A key factor that determines the geographic extent of a housing market is the distance that commuters are willing to travel from home to work. Which of the following events would NOT help to expand the geographic extent of the housing market in a metropolitan area?
A) Price of gasoline declines
B) State gasoline tax increases
C) Public transit fares decrease
D) none of the above

Question

Quizplus · Accepted Answer

Increasing state gasoline tax would increase the price of gasoline and hence discourage people from traveling long distances for work. This would limit the expansion of the housing market in a metropolitan area. Therefore, this event would not help to expand the geographic extent of the housing market. A, C, and D would all help to expand the geographic extent of the housing market by making commuting more affordable and convenient.

A Key Factor That Determines the Geographic Extent of a Housing