Price elasticity of demand for transportation generally is:
A)the same as price elasticity of the demand for bus tickets.
B)greater than price elasticity of the demand for bus tickets.
C)less than price elasticity of the demand for bus tickets.
D)greater than price elasticity of the demand for bus tickets when bus tickets are expensive,but less than price elasticity of the demand for bus tickets when the prices of bus tickets fall.

Question

Quizplus · Accepted Answer

The more specifically defined the good,the more substitutes it has.While transportation generally has few substitutes,so low price elasticity of demand,a consumer can choose from among different specific types of transportation that are substitutes for each other.

Price Elasticity of Demand for Transportation Generally Is