Government officials have hired your consulting firm to encourage more people to use the theater . In the initial meeting, you discussed several options for increasing demand. Three suggestions are listed below. Based on your knowledge of the law of demand, what is your recommendation for each suggestion?

Suggestion 1: Reduce the price of public transportation
Choose one:

a. Not recommend
b. Recommend

Suggestion 2: Increase the prices of private transportation by increasing the price of parking and gasoline
Choose one:

a. Not recommend
b. Recommend

Suggestion 3: Offer monthly and yearly passes that reduce the price per ride
Choose one:

a. Not recommend
b. Recommend

The law of demand says that the increase in the price of the commodity will result in decrease in the utility derived from that product and as a result the consumption of the product falls.

So by keeping the law of demand in view, we can say that the:

Reduction in price of public transportation is not recommended because every transporter will start investing in public transport and we will have higher number of buses per person.
The increase in the price of parking and gasoline is recommended as the increase in parking fees and gasoline cost will discourage people to buy private transportation.
Offer of monthly and yearly passes to reduce the price per ride is not recommended as it encourages the cyclists to travel via bus. Hence it is not recommended.