Question

People have pointed out that massive expenditure could have been avoided if only a
fraction was spent on upgrading the public bus system. Do you agree? Yes/No. Justify
your answer by giving reasons.

Answer 1

Answer:

Yes

Explanation:

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Answer 2

Answer:

A subsidy is likely to reduce public transport charges – in graphical terms, the supply curve will shift to the right, reducing the equilibrium price. This will lead to an extension of demand, as more people are encouraged to use this form of transport.

Explanation:

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