4) , A transit system in a medium-sized city operates at a loss, as do essentially all transit systems in the U.S. The transit agency is under pressure from its advisory board to increase fares in order to cover a larger proportion of operating costs. The agency is also under pressure from various groups representing riders and from other who argue that fares should be lowered in order to attract more riders, thereby reducing highway congestion, air pollution, and gasoline consumption. Research conducted at a local university indicates that the price elasticity for bus service in similar-sized cities is on the order of 1.3. If so, how much would revenue change if but fares were increased from $1.25 to S1.50? If fares were reduced to S1.00? Given that the vast majority of the costs of bus service would remain the same, since no one advocates reducing scheduled service, explain why you recommend raising or lowering fares