ECO100Y1 Lecture : Q1 Transit Fares (Medium)
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In this chapter, we calculated the likely long-run change in revenue in NYC were to raise mass transit fares from $2.00 to $2.50. Use the same procedure to calculate the short-run impact of this fare hike. This time, use an elasticity of 0.35, which is in the middle of the short-run estimates in the table.
Ā Good Ā |
Area of study | Short-run elasticity | Long-run elasticity |
Gas | United States | 0.26 | 0.58 |
Ā | Britain | 0.25 | 0.6 |
Electricity | US-- New England | 0.19 | 0.33 |
Ā | US Pacific Coast | 0.19 | 0.25 |
Oil | US | 0.06 | 0.45 |
Ā | France | 0.07 | 0.57 |
Ā | Japan | 0.07 | 0.36 |
Ā | Denmark | 0.03 | 0.19 |
Mass Transit | Multi-country | 0.2 to 0.5 | 0.6 to 0.9 |
Ā