Amtrak, a national passenger railroad heavily subsidized by taxpayers, operates at a huge loss every year. Recently, officials at Amtrak expressed confidence that they can turn things around by “running the railroad like a business.” Specifically, Amtrak’s managers plan to raise ticket prices to “trim costs and boost revenues.” What must be true about Amtrak’s demand elasticity for this plan to work? What effect will raising price have on Amtrak’s costs?