In the Case in Point on the Ambassador Bridge, the owner has _____ fares presumably because the demand for use of this bridge is _____.
A) increased; elastic
B) increased; inelastic
C) decreased; elastic
D) decreased; inelastic

Question

Quizplus · Accepted Answer

The owner has increased fares presumably because the demand for use of this bridge is inelastic. This means that even if the fares increase, people are still willing to pay for it, as there are no close substitutes for it.

In the Case in Point on the Ambassador Bridge, the Owner