Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The current price for a high speed train ticket from Toulouse to Barcelona is 30 euros. Trains are currently operating at 80% capacity. Demand

image text in transcribed
1. The current price for a high speed train ticket from Toulouse to Barcelona is 30 euros. Trains are currently operating at 80% capacity. Demand is linear and downward slopng7 and the estimated elasticity is 1.5. Which of the following is true? A. decreasing the price by a small amount would increase revenue B. increasing the price by a small amount would increase revenue C. reducing capacity by a small amount would increase revenue D. none of the above is necessarily true

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Inequality

Authors: Thomas Piketty, Arthur Goldhammer

1st Edition

0674504801, 9780674504806

More Books

Students also viewed these Economics questions

Question

Would giving rewards or administering punishments be

Answered: 1 week ago