Which option illustrates the multiplier effect often seen in large cities?

The multiplier effect describes how an initial increase in spending or investment can lead to a chain reaction of economic activity, resulting in greater overall economic growth. The presence of specialized equipment in an industry serves as a catalyst for further investment and business activity. When specialized equipment becomes available, it not only meets the immediate needs of businesses but also attracts additional companies that require that equipment or services, thus creating jobs and stimulating the local economy. This can lead to a thriving business environment where more firms and industries emerge to take advantage of the specialized resources, ultimately enhancing economic growth in the area.

In contrast, the other options reflect different dynamics but do not specifically illustrate the multiplier effect. The lowering of prices due to a large population can lead to increased consumption, but it doesn't inherently generate more economic activity based on an initial investment. The availability of public transportation improves accessibility but does not directly create new business investments. Lastly, while a local newspaper giving away a free edition could boost readership and community engagement, it does not directly invoke the economic principles of the multiplier effect in the context of generating additional business opportunities or investment. Therefore, the first choice clearly exemplifies how the multiplier effect operates within the economic landscape of a large city.