1. As a transit planner for the city of Miami, you must predict how many people ride the Miami Metrorail and how much money is generated from train fares. According to a recent study, the short-run elasticity of demand for Metrorail is 0.62 and the long-run elasticity is 1.59. The current ridership is 50,000 people per day. Suppose the city commission decides to increase fares by 10%. a. Predict the changes in train ridership over a onemonth period and a veyear period. ANS: b. Over the onemonth period, will total revenue increase or decrease? What will happen in the ve-year period? ANS