If public transportation is a substitute to driving and downtown parking is a complementary service to driving, then a rise in the price of downtown parking will cause the supply of public transportation to increase.

Question

Quizplus · Accepted Answer

A rise in the price of downtown parking would likely increase the demand for public transportation, not the supply. Supply is determined by factors like production costs and technology, not by changes in the price of complementary goods.

If Public Transportation Is a Substitute to Driving and Downtown