a subway fare cost $2.75. The point price elasticity of demand (at a price of $2.75) has been estimated recently as something in the vicinity of -.12 use this fact to answer the following question

10. If the MTA increases prices by 30% by what percentage would quantity demanded decrease? Show you work.

11. i.Graph demand for subway rides, labeling (i.) Axes and (ii). Demand curve, (iii) price, and (iv) quantity demanded, and (v) the region that represents total revenue (TR)

(your graph should reflect the point price elasticity of a subway ride; dont confuse this with relative elasticity.

ii. If the MTA increases the price of a subway fare, would total revenue increase or decrease? Briefly explain how you know.