1
answer
0
watching
173
views
4 Apr 2018
13. You are given the following information about the transit system in a city: the elasticity of demand is 1.00 the current price of a ticket is $2.00 daily revenue from ticket sales for the transit system is $200,000 The manager of the transit system wants to increase revenue and is considering increasing the fare from $2.00 to $2.10. He asks you what the prospective fare increase will do to revenue. A good estimate for the percentage change in daily revenue from ticket sales in response to the price increase (rounding to the nearest integer) is: A) -10% (B)-5% (C) 0% (D) +2% (E) +4% (F) +5% (G) +8% (H) +10% (1) +20% (J) none of the above
13. You are given the following information about the transit system in a city: the elasticity of demand is 1.00 the current price of a ticket is $2.00 daily revenue from ticket sales for the transit system is $200,000 The manager of the transit system wants to increase revenue and is considering increasing the fare from $2.00 to $2.10. He asks you what the prospective fare increase will do to revenue. A good estimate for the percentage change in daily revenue from ticket sales in response to the price increase (rounding to the nearest integer) is: A) -10% (B)-5% (C) 0% (D) +2% (E) +4% (F) +5% (G) +8% (H) +10% (1) +20% (J) none of the above
Elin HesselLv2
7 Apr 2018
