Would Total Revenue increase or decrease if the per ride fares were increased by 5% or 20%
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Question:
Would Total Revenue increase or decrease if the per ride fares were increased by 5% or 20% and how much will they go up (this requires a numeric answer, and you must show your work)? (9 Points)
PriceElasticityofDemand=QPPQ
Transit System | Avg. Fare Per Trip | Fare w/ 5% Increase | Fare w/ 20% Increase |
City Transit | $0.99 | $1.04 | $1.19 |
Victory | $1.23 | $1.29 | $1.48 |
Frontier | $1.38 | $1.45 | $1.66 |
Regional Rail | $3.81 | $4.00 | $4.57 |
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