For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to driving their own cars. so, for these people, the cross-price elasticity of demand between gasoline and public transportation

In this mentioned case we can determine that the cross-price elasticity of demand in this case is positive.

Explanation:

Cross-price elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good. If the gasoline price increase, the demand for public transportation will increase so the balance is positive.

So, for these people, the cross-price elasticity of demand between gasoline and public transportation is positive

Explanation:

What Is Cross Elasticity of Demand?

The cross elasticity of demand is a term used in economics to measure how people respond in the quantity demand of one good when the other good has its price changed .

The calculation is done by taking the percentage of the quantity demanded for the other good over the percentage change in price of the other good.

For example if the price of the apples is increased people may consider the alternative such as pears so the quantity of pears demanded will increase.

In the case above let us say gasoline price increases people has an alternative of using public transport; as the gasoline price increases the demand for public transport increases.

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explanation:

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