A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2010 · Q171 Mark

What will make it more likely that road tolls will reduce traffic congestion?

ACross-elasticity of demand between private and public transport is zero.

BDemand for car use is income-elastic.

CDemand for car use is price-elastic.

DSupply of public transport is price-inelastic.

✓ Correct answer

C: Demand for car use is price-elastic.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2010 Paper 1 Variant 2, question 17.

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