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 ________ between gasoline and public transportation is positive.
A)income elasticity of demand
B)price elasticity of demand
C)cross-price elasticity of demand
D)price elasticity of supply

Question

Quizplus · Accepted Answer

Cross-price elasticity of demand measures the responsiveness of demand for one good or service to a change in the price of another good or service. In this case, the price of gasoline and the price of public transportation are complementary goods, meaning they are consumed together, and a decrease in the price of one will increase the demand for the other. Therefore, the cross-price elasticity of demand between gasoline and public transportation is positive.

For People Who Live near a Bus Route,a Subway Station,or