If bus fares fall but fewer people are riding the bus, it is likely that
A) the bus company is incompetent.
B) demand decreased.
C) supply decreased.
D) demand increased.
E) supply increased.

Question

Quizplus · Accepted Answer

A decrease in bus fares could lead to an increase in demand for rides, but if fewer people are riding the bus despite lower fares, it suggests that the demand for bus rides has decreased. This could be due to factors such as shifts in population, changes in transportation preferences, or the availability of alternative modes of transportation.

If Bus Fares Fall but Fewer People Are Riding the Bus