1. reduce the quantity of bus transportation demanded.
2. increase the quantity of automobiles demanded.
3. reduce the quantity of gasoline demanded.
4. do all of the above.
Choose the option that yields the correct answer.
Option 3 is the correct answer. That the quantity of gasoline demanded will decline should be obvious from everything you have learned thus far. If automobiles and gasoline are complementary goods, as would seem reasonable, the quantity of automobiles demanded should be dragged down (albeit by a small amount) along with the quantity demanded of gasoline, so option 2 is a wrong choice. Automobiles and buses are clearly substitute methods of getting from place to place. Hence, the quantity of bus transportation demanded must increase, not decline as option 1 states. Option 4 is then clearly also incorrect.