Based on the differences in terminal and line-haul costs, which form of transportation is preferred over long distances?

Water

Explanation:

Based on these differences it is said that the preferred form of transportation over long distances is Water. Since over 70% of the Earth is covered in water and there are very few barriers to overcome in order to transport through water then it gives many advantages for long-distance transportation of goods. Such advantages includes cheap, fewer maintenance costs, ease of transport, available during natural calamities, important for foreign trade, useful for large and bulky goods, etc.

answer/// real gdp decreases to y3 and the price level falls to p3;