Question
If the demand for public transit is very price elastic, we would expect that providing a subsidy to the public transit company would shift the
If the demand for public transit is very price elastic, we would expect that providing a subsidy to the public transit company would
shift the demand curve for mass transit to the down/left
increase ridership more than if demand were price inelastic
shift the demand curve for mass transit to the up/right
increase ridership less than if demand were price inelastic
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
