A study of mass transit systems in American cities revealed that long-run revenues generally decline after substantial fare increases. This suggests that:
A. mass transit service deteriorates in the long run as price rises.
B. the demand for mass transit is price-elastic in the long run.
C. there are few good substitutes for such systems in urban areas.
D. the demand for mass transit is price-inelastic in the long run.
Answer: B
Economics
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