Asked by
Matthew Speer
on Oct 26, 2024
Verified
The director of River City Public Transport recently stated,"The last seven times we increased bus fares,revenues dropped." This remark suggests the demand for bus service is elastic.
Bus Service
A public or private system offering regular travel on established routes by buses for the transportation of individuals.
Bus Fares
The charges levied for traveling on a bus, typically based on the distance or zones traveled.
Revenues Dropped
A situation in which the total income generated by a business from its activities decreases compared to a previous period.
- Master the idea of price elasticity of demand and its computational procedure.
- Project the outcomes of price adjustments on cumulative revenue and expenditures, factoring in the elasticity of demand.
Verified Answer
AN
Learning Objectives
- Master the idea of price elasticity of demand and its computational procedure.
- Project the outcomes of price adjustments on cumulative revenue and expenditures, factoring in the elasticity of demand.