Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Elasticity of demand for buses is 0.7 in the short run and 1.5 in the long run:
A. Demand tends to be less elastic in the short run because there are fewer substitutes. If fares rose enough, in the long run, people could find alternative modes of transportation.
B. These relative elasticities of demand are simply a coincidence; there is no real reason why elasticity should be lower in the short run than in the long run.
C. Demand tends to be less elastic in the short run because there are more substitutes. If fares rose enough, in the short run, people can find alternative modes of transportation.
D. Demand tends to be more elastic in the short run because there are more substitutes. If fares rise enough, in the short run, people can find alternative modes of transportation.

Sagot :

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.