Question:

Which of the following would you expect to have a more inelastic demand and why?

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A demand for public transportation versus our demand for automobiles?

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  1. I think that would depend on your location.  I lived in a city with a great public transportation system.  In that setting, cars would be more elastic, because it would be easy to substitute public transport for them.  Now I live in a city with some pretty crappy public transport.  You hardly see a bus or a cab.  In this setting then need for transportation coupled by the absence of public transport makes for a very inelastic demand for cars.

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