Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.
If all of the statements above are true, which of the following is most likely to be damaged by the city council’s plan?
a) A local chain of service stations, which will see fewer customers during the daily commute.
b) Members of the bus drivers’ union, who will be forced to add more routes and work longer hours.
c) The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months.
d) Commuters who already use public transportation daily and who will face crowded conditions and travel delays.
e) Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
Why not d?
I thought more people who used to drive to work use public transportation because of free fare of public transportation, so commuters who already use public transportation will be dameged by crowded condition.
Also, I thought that goverment will receive more tax from increased spending, and the increased tax revenue will supplement the unbalaced budget.
Did I think too much? ;;;;