Question
The New York Times reported (Feb. 17, 2006) that subway ridership declined after a fare increase: There were nearly four million fewer riders in December
TheNew York Timesreported (Feb. 17, 2006) that subway ridership declined after a fare increase: "There were nearly four million fewer riders in December 2005, the first full month after the price of a token increased25 centsto $1.50, than in the previous December, a4.3percent decline."
- Use these data to estimate the price elasticity of demand for subway rides. (5 points)
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
