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3. The TTC decided to increase its rates from $3.50 to $5.00. Currently ridership stands at 68,000 people a day. If Elasticity is 0.8,

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3. The TTC decided to increase its rates from $3.50 to $5.00. Currently ridership stands at 68,000 people a day. If Elasticity is 0.8, what would happen to total revenue? Would you advise the TTC to increase its price?

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Calculate the percentage change in price from 350 to 500 The percentage change in price is calculated by the formula New PriceOld Price x 100 So the percentage change in price i 500350 x 100150100 4286 Use the price elasticity of demand formula to calculate ... blur-text-image

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