Really what a question! I did not get it right but after spending some time, here is my analysis:
Option B is the correct answer.
Why is Option A wrong?
Although the riders may continue to ride with an increased fare, the increase in cost here may be compensated with the decrease in cost due to decrease in number of trips. Overall net increase/decrease could be 0.
Why is Option B correct?
From B we know that the advertising cost per mile remains constant. From the premise we know that the number
...
Option B is the correct answer.
Why is Option A wrong?
Although the riders may continue to ride with an increased fare, the increase in cost here may be compensated with the decrease in cost due to decrease in number of trips. Overall net increase/decrease could be 0.
Why is Option B correct?
From B we know that the advertising cost per mile remains constant. From the premise we know that the number
...
