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Suppose a subway line determines it can charge different prices to riders during rush hours and riders who travel on the weekend or during off-peak

Suppose a subway line determines it can charge different prices to riders during rush hours and riders who travel on the weekend or during off-peak hours. The subway's line goal is to increase total revenue.

The price elasticity of demand for riders during rush hour is -.70, and the price of elasticity of demand for off-peak travelers is -2.20.

Based on the price of elasticity of demand for each group of people, how should the subway adjust its prices?

Choose One:

A. Lower the price for off-peak travelers, and keep the price the same for riders during rush hour.

B. Lower the price for off-peak travelers, and raise the price for riders during rush hour.

C. Raise the price for off-peak travelers, and keep the price the same for riders during rush hour.

D. Raise the price for off-peak travelers, and lower the price for riders during rush hour.

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