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 cross-price elasticity of demand between petrol and public transportation is:
A)positive.
B)negative.
C)zero.
D)infinity.

Question

Quizplus · Accepted Answer

The cross-price elasticity of demand between petrol and public transportation is positive because as the price of petrol increases, people are more likely to use public transportation, indicating that these goods are substitutes.

For People Who Live near a Bus Route, a Subway