Refer to Exercise 27. Let g (p₁, p₂) be the number of people who will take the train when p₁ is the price of the bus ride and p₂ is the price of the train ride. Would you expect δg/δp₁ to be positive or negative? How about δg/δp₂?

Exercise 27

In a certain suburban community, commuters have the choice of getting into the city by bus or train. The demand for these modes of transportation varies with their cost. Let f (p₁, p₂) be the number of people who will take the bus when p₁ is the price of the bus ride and p₂ is the price of the train ride. For example, if f (4.50, 6) = 7000, then 7000 commuters will take the bus when the price of a bus ticket is $4.50 and the price of a train ticket is $6.00. Explain why

Transcribed Image Text:

af др1 < 0 and af ap2 > 0.