The demand for which of the following is likely to be the most price inelastic? a. Transportation b. Greyhound bus tickets c. Uber rides d. Delta airline tickets

The **most price inelastic** option among the choices provided is: **a. Transportation** ### Explanation: **Price Inelasticity of Demand** refers to situations where the quantity demanded of a good or service is relatively unresponsive to changes in its price. Several factors contribute to the elasticity or inelasticity of demand, including the availability of substitutes, necessity versus luxury, and the proportion of income spent on the good or service. 1. **Transportation (General)** - **Necessity:** Transportation is a fundamental necessity for daily activities like commuting to work, school, and essential errands. - **Limited Substitutes:** For many, there are limited viable alternatives to transportation (e.g., walking or cycling may not be feasible for long distances or for everyone). - **Broad Category:** Being a broad category, it includes various forms of transport, many of which are essential and thus less sensitive to price changes. 2. **Greyhound Bus Tickets** - **More Substitutes:** Travelers can choose from other bus companies, trains, flights, or personal vehicles. - **Higher Elasticity:** Due to the availability of alternatives, demand is more sensitive to price changes. 3. **Uber Rides** - **High Substitute Availability:** Numerous ridesharing services (e.g., Lyft), taxis, public transport, or personal vehicles are available as alternatives. - **Higher Elasticity:** Consumers can easily switch between different modes of transport based on price. 4. **Delta Airline Tickets** - **Specific Use Case:** While air travel is essential for long-distance travel and business, it's still subject to substitutes like other airlines, trains, or video conferencing. - **Moderate Elasticity:** Especially in competitive routes, the demand can be somewhat sensitive to price changes. Given the above factors, **general transportation** encompasses essential services with fewer direct substitutes compared to the more specific options listed, making its demand the most price inelastic among the choices. **Answer:** a. Transportation