Question
A newspaper reported that an increase in bus fare decreased the number of people travelling from Green Bus Metro. There has been a 5 percent
A newspaper reported that an increase in bus fare decreased the number of people travelling from Green Bus Metro. "There has been a 5 percent decline in Green Bus Metro ridership as the fare increased from Rs.50 to Rs.75."
a)Calculate the price elasticity of demand. (2 Marks)
b)What is the effect of fare increase on Green Bus Metro revenue? (1 Marks)
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Historical Perspectives On The American Economy Selected Readings
Authors: Robert Whaples, Dianne C Betts
1st Edition
0521466482, 9780521466486
