A consultant for the CAT bus system in Raleigh, North Carolina, estimates that the price elasticity of demand for bus rides is -3

Economics Dec 23, 2020

A consultant for the CAT bus system in Raleigh, North Carolina, estimates that the price elasticity of demand for bus rides is -3.41. If the estimate is correct, it follows that, if bus fare is increased,

a. bus ridership will increase.

b. total revenue will decrease.

c. total revenue will increase.

d. there will be no effect on bus ridership.

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