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Q2 c) A 10 percent rise in the price of bus fares increases the quantity demanded of taxi by 6% and decreases the quantity of

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Q2 c) A 10 percent rise in the price of bus fares increases the quantity demanded of taxi by 6% and decreases the quantity of demanded of bus by 8%. Q2 c(i): Calculate the price elasticity demand (PED) for bus services? If bus services price elastic or price inelastic? What will happen to the bus company's total revenue after it raises it price? (3 marks) [Answer and show workings here]

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